IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


1.0 


I.I 


1.25 


f^  IIIIIM 

■"   *«    1 2.2 

m  '""^ 

ti"    12.0 


111= 

lU    ill  1.6 


v: 


^ 


/}. 


"X 


<>. 


»/  ,;• 


>; 


tf- 


sK 


w 


'/ 


w 


Hiotographic 

Sciences 
Corporation 


23  WEST  MAIN  STREET 

WEBSTER, NY    I4S80 

(716)  872-4503 


us>« 


4\. 


CIHM/ICMH 

Microfiche 

Series. 


CIHM/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  fur  Historical  Microreproductions  /  Institut  Canadian  de  microreproductions  historiques 


Technical  and  Bibliographic  Notes/Notes  techniques  9t  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filming,  are  checked  below. 


L'Institut  a  microfilm^  le  meilleur  exemplaire 
qu'il  lui  a  M  possiblo  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sont  peut-dtre  uniques  du 
point  de  vue  bibliographique,  qui  peuvent  modifier 
une  image  reproduite,  ou  qui  peuvent  exiger  una 
modification  dans  la  mdthode  normale  de  filmage 
sont  Indiquds  ci-dessous. 


0 


Coloured  covers/ 
Couverture  de  couleur 


□    Covers  damaged/ 
Couverture  endommagde 

r~7|    Covers  restored  and/or  laminated/ 
I  V  I    Couverture  restaurde  et/ou  pelliculde 


D 
D 


y 


Coloured  pages/ 
Pages  de  couleur 

Pages  damaged/ 
Pages  endommagdes 

Pages  restored  and/or  laminated/ 
Pages  restaur^es  et/ou  pellicul6es 


□    Cover  title  missing/ 
Le  titre  de  couverture  manque 


□ 


Images  discoloured,  stained  or  foxed/ 
Pages  d6color6es,  tachetdes  ou  piqudes 


I      I    Coloured  maps/ 


Cartes  g^ographiques  en  couleur 


Pages  detached/ 
Pcges  ditachdes 


D 


D 


Coloured  ink  (i.e.  other  than  blue  or  black)/ 
Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 


I      I    Coloured  plates  and/or  illustrations/ 


Planches  et/ou  illustrations  en  couleur 


Bound  with  other  material/ 
Reli6  avec  d'autres  documents 


D 
D 

n 


Showthrough/ 
Transparence 

Quality  of  print  varies/ 
Quality  indgale  de  ('impression 

Includes  supplementary  material/ 
Comprend  du  materiel  supplementaire 


D 


Tight  binding  may  cause  shadows  or  distortion 
along  interior  margin/ 

La  reliure  serr^e  peut  causer  de  I'ombre  ou  de  la 
distortion  le  long  de  la  marge  intdrieure 

Blank  leaves  added  during  restoration  may 
appear  within  the  text.  Whenever  possible,  these 
have  been  omitted  from  filming/ 
II  se  peut  que  certaines  pages  blanches  ajoutdes 
lors  d'une  restauration  apparaissent  dans  le  texte, 
mais,  lorsque  cela  6tait  possible,  ces  pages  n'ont 
pas  dt6  filmdes. 


D 
D 


Only  edition  available/ 
Seule  adition  disponible 

Pages  wholly  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  been  refilmed  to 
ensure  the  best  possible  image/ 
Les  pagos  totalement  ou  partiellement 
obscurcies  par  un  feuillet  d'errata,  une  pelure, 
etc.,  ont  6t6  filmies  d  nouveau  de  fa^on  d 
obtenir  la  meilleure  image  possible. 


D 


Additional  comments:/ 
Commentaires  suppidmentaires; 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  filmd  au  taux  de  rdductior  indiqu6  ci-dessous. 

10X  14X  18X  22X 


26X 


30X 


n/ 

12X 


16X 


20X 


24X 


28X 


32X 


The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  of: 

Library  of  the  Public 
Archives  of  Canada 


L'exemplaire  filmA  fut  reprodult  grAce  A  la 
gAnAroeltA  de: 

La  bibliothdque  des  Archives 
publiques  du  Canada 


The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  in-pres- 
sion,  or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


Les  images  suivantes  ont  6t4  reproduites  avec  le 
plus  grand  soin.  compte  tenu  de  la  condition  et 
de  la  nettet*  de  l'exemplaire  filmi,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprim6e  sont  film^s  en  commengant 
par  le  premier  plat  et  en  terminant  soit  par  la 
dernidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  salon  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  fiim^s  en  commenQsnt  par  la 
premiere  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration  et  en  terminant  par 
la  dernidre  page  qui  comporte  une  telle 
empreinte. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^>  (meaning  "CON- 
TINUED "),  or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Un  des  symboles  suivants  apparaftra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbols  — ►  signifie  "A  SUIVRE  ",  le 
symbols  V  signifie  "FIN  ". 


Maps,  plates,  charts,  etc.,  may  be  filmed  at 
different  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  one  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
right  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  dtre 
fiimis  d  des  taux  de  reduction  diffiftrents. 
Lorsque  le  document  est  trop  grand  pour  dtre 
reproduit  en  un  seul  cliche,  il  est  f  ilm6  A  partir 
de  Tangle  supdrieur  gauche,  de  gauche  d  droits, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  ndcessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


1 

2 

3 

1 

2 

3 

4 

5 

6 

...«~...«i»».«^..,.w,».«^...««..j|^Y)(Yyy..^^ 


;>*!**Ji^*:-r^S*ft'!f;%"^'W^f;«?«^..,. 


-    >''t:..^'   _^M  r-W^Jt^- 


■d*M^|hM>MMMM«NhkM 


W>iMfci«»»  *  i^i»»^iM*  •mmfmmmm 


OUR   RELATIONS 


WU'if 


!-^ 


Statemerst  by  JOSEPH  KiMMG.  Jr., 


'-*K- 


BT«F"jiR  Tfafi 


*.: 


O"^ 


RELATIONS  WFi'lf  (;ANA1>A. 


Al^iifL  ae*  ISiiO. 


I 

i 


aO'^  EKKMISKT   FKlK'TJr^'i   OFFlCF.. 


.  !»■   ■».««» 


ii  a.i^lSI\A«X3.,A... 


SKLEOT  (;OMM!TTKK  01"  TllK  SliMTE  : 


.^ 


1 1  i 


WoBCEaruB.  Mawm.,  J'lli^  '20,  188',). 

H.)n.  .Io«EPH  NiMMo, 

Huntington,  Long  fshtnd,  xV.  J'. 

My  Deau  Sib  -.  Tho  Comiuittee  ou  Rolutious  with  Caua.lu  is  to  proceed  with  its* 

inve^.ti«fttiun   iu  Uostoii   about   September  7.      \VouM  it   In.'  .ijjrepable  to  ynu   to 

prepare  nnd   give   to   that   Conftuittee   your  views   ou   ih-   gea^rO   subject   of  th.' 

relatiouH  of  the   United   States   with   Canada  y    They   would   be  of  great  interest 


and  value. 


I  am.  faithtnlly  your8, 


GEO.  F.  HOAU. 


To  Seuator  Hour'^  mvitatiou  Mr.  Nimuio  replii-d.  und.T  date  of  July  27.  isHlt. 
exprosfling  his  regrets  that  he  voul.1  !>.■  uuabl-  to  appear  before  the  roimnittee 
ii,  BosUm  duriuj,'  the  tuonth  of  September.  Variou.-.  mcumsvanceH  intervened  to 
pvevent  \hv  hearing  until  April  2<i.  IH'tO,  when  it  t.-k  plaee  at  th-  Cupif  >!  in 
Washington. 


Select  Committee  of  the  Crnited  States  Senate  on  Relatiom  with 

Canada. 

Soimtor  Hoar,  of  Massadmsetts,  Chaimiaii. 
Hciiator  Allihon,  of  Iowa. 
•     ,  Buuator  Hale,  of  !Maiu«-. 

Seuatov  DoLrH,  of  Ortgou. 
Seuator  Puou.  of  Alabama. 
Htniator  I^UTLElt,  of  South  ("avoliua. 
Senator  YooiuiEES,  of  IiuliaiiM. 


:  f 


RKLATIONS    WITH   CANADA, 


885 


TESTIMONY  OF  JOSEPH  NIMMO.  JE. 

'  Washington,  ]).  0.  vli>rt7  20, 1890. 

JosEPrr  NiMMO,  Jr.,  sworn  and  cxniniiied  : 

Tbo  CiiAimiAN.  Mr.  Niinnio,  tho  purpose  of  tliis  coininiMce  is  to  col- 
lect H^c^  iiifon  lation  hh  we  ran  in  regard  to  the  relations  Ixitweea  tlio 
Uiiited  States  and  Canada,  ill  which  wo  iiieludo  tho  iclatioii."  of  the  two 
countrieN  to  each  otiier  with  releience  to  trade,  the  elfect  of  the  tiscal 
legislation  (»f  t^ach  upon  the  other,  tlu^  social  and  i)ossil)le  closer  rela- 
tions with  <Mch  other,  and,  in  general,  everything  which  may  be  in- 
clndod  in  the  most  liberal  interpretation  of  that  term.  Wv  know  that 
you  have  lu'en  a  vt'iv  clo.se  student  ot  this  subject  for  many  years,  and 
we  should  l»c  glad  to  have  you  in  your  »)wn  way  state  to  tlie  committee 
such  facts  ami  consideratU)ns  as  shall  o(!Cur  to  you.  Y«»u  hove,  J  sup- 
])osc,  seen  something  of  the  c«)ur.se  of  the«'videuce  that  has  lieen  taken 
by  the  coinniittee  heretofore'! 

The  AViTNKss.  Yes. 

The'CiiAiinrAN.  With  that  preliminary,  I  will  ask  you  to  proceed. 

yenator  IIvlk.  Belbre  Mr.  Nimmo  proceeds  with  his  general  testi- 
mony I  should  like  to  ask  him  it  he  has  visited  Canada  within  the  last 
tive  or  six  years  f 

The  WiTMiss.  Yes,  1  have  been  through  Canada,  have  niiide  several 
visits  there  tor  the  pur}v)se  of  studying  this  «|uesti<»u.  This  is  a  subject 
I  have  given  more 'or  h  ss  attention  to  for  the  last  thirty  years,  first,  as 
a  New  York  State  question,  arising  out  of  the  competition  between  tho 
canals  of  Canada  and  the  hhie  Canal. 

The  Cjiairman.  I'erhaps,  as  the  minority  members  of  the  committee 
aie  not  present  at  this  momeut,  it  will  be  prcjper,  after  your  evidence 
has  been  received  in  print,  if  they  should  desire  at  some  later  time  to 
put  any  (juostions  to  you,  to  reserve  the  o])j)ortunity  for  them  to  do  so. 

Senator  Hale.  The  opportunity  should  also  be  reserved  to  any  of 
the  t)tlier  members. 

The  Chaiuman.  Certainly.  • 

The.  Witness.  1  shall  be  happy-to  conform  to  the  wishes  of  the  com- 
mit tee  in  that  regard,  I  shall  probiibly  Ix."  in  Washinjgton  for  at  lea-t 
two  weeks,  though  if  in  the  uumu  time  1  should  go  to  New  York  I  will 
return.  1  am  j)articnlarly  glad  to  see  Senators  llale  and  Dolph  here 
this  morning,  as  I  shall  touch  upon  expressions  of  opinion  at  both  the 
(•astern  and  western  ends  of  this  line. 

Mr.  tjluiirman,  1  am  here  to-<lay  by  your  invitation  for  the  purpose  of 
presenting  to  this  committee,  in  as  concise  a  manner  as  1  nuiy  be  able, 
the  result  of  a  somewhat  carelul  study  of  the  relations  sustained  by  the 
l»ominion  of  Canada  to  the  I'nited  States.  The  facts  which  have  come 
t«)  my  11  tice  have  ('onviticed  me  that  such  provisions  of  legislation  as 
may  be  adopted  for  the  cure  ol  the  evils  now  aJl'ecting  these  relationships 
must  be  based  upon  considerations  toucliing  the  character  of  theCaua- 
<li;n!  (lovernment  iuid  the  relations  which  it  su.stitins  to  (rreat  Britaiu 
and  to  the  United  States.    In  an  esi>ecial  manner  I  desire  to  ask  your 


«80 


UKLATIONS   WITH    CANADA. 


nttoiitioii  to  thv  iulliu'iu'*'  wh'wh  (lio  ownorsl'.ip  nnd  maimp'inpnt  of 
cjuiiils  iiiid  nil  n»aiKs,  uimI  Hh*  pntinotion  <»(  tin*  iii(vie«f.s  of  tiaiixporUi- 
thtn  linen  on  tlii«  IiiimI  iind  on  the  hpb,  by  the  J)oiniiiioii  ami  llritisli 
GovrninuMitM  lias  litid  iijton  AiiiPii<'iin  iiitiM'sts. 

■  Ever  Hiiioc  (In-at  IJiitiiiii  was  forced  to  aokiiowledjje  the  iiHlepen<l- 
onee  of  the  lliiitcd  Stiites  nIm'  has  8t.ea«lil.v  preserved  the  jiolicy  c*' 
allowiiifr  her  prineipal  eolonirs  to  work  out  tlieir  own  deHliny  accordinj; 
to  llie  h'udinus  of  their  Nfjeuilie  wjints  and  experiences.  The  re«ult  of 
this  has  hi'vu  that  in  almost  evrry  essential  attribute  they  have  become 
political  antonoinies.  TiM'DonunionCfovcininent,  whose  ex iHtiince  dates 
from  July  1,  lH<i7,  is  in  fact  ai'onfederaey  of  independent  states,  eloHcly 
allied  to Oreat  Britain  by  the  bonds  of  aftection,  but  ditt'erinfr  tVom  her 
widely  in  all  matters  of  local  interest  and  of  foreifjn  relationshipa. 
Military  occnpati«>n  by  the  mother  country  censed  long  ajro.  The  gov- 
ernor-;;eneral  ni  Canada,  sent  out  l)y  the  (^Mieen,  has  been  strii»p<'d  of  all 
real  authority,  and  the  i)ower  to  dictate  the  terms  of  commercial  treatien 
is  oi)(»idy  assertt'd  and  freely  exercised  by  the  Dondnion  (Joveriiment. 
The  j)olitical  party  now  in  i)ow<'r  in  (Janada  has  adopted  the  policy  of 
taritl  ]irotection,  even  against  free  trade  Enjiland,  but  at  the  same  time 
it  is  loudest  in  its  jirofessions  of  loyalty  to  (Jreat  iiritain.  It  also  i>ro- 
claiiris  ''(Jreatcr  Ibitainism,"  and  vehemently  advocates  the  s<:lieme  of 
British  imperial  coidederation — a  scheme  which  challen}(es  the  atten- 
tion of  the  United  Stat<»s. 

Canada  receives  uo  liscal  aiil  from,  and  pays  no  tribute  to,  Great 
Britain.  Without  an  arm}'  or  a  Utavy,  the  <.'anadians,  however,  look  to 
Cireat  jbitain  f«)r  military  i)rotection.  In  all  other  respects  the  ])ulltical 
bonds  between  Canada  J'ud  Great  Britain  apjtear  to  be  sentimental 
rather  than  practical,  and  yet  the  sentiuuMit  is  a  forceful  one.  The 
l)ractical  abrojt;ation  of  authority  over  the  North  Atuerican  c<donie8  by 
Great  Britain  has  fumo,  far  beyond  the  line  of  policy  advocated  by  Ecl- 
muJid  Burke  in  his  <jreat  speech  on  conciliation,  and  probably  beyoinl 
any  thiufr  ever  imagined  by  that  great  statesman,  and  yet  the  bond  of 
affection  between  Canaila  and  the  im>ther  country  is  apparently  as 
strong  today  as  e^'er.  The  philosophy  of  the  C.'ana<lian  governmental 
system,  if  tliere  be  any  philosopiiy  about  it,  \»  a  riddle  to  the  Auuu'i- 
can  mind. 

The  so-called  cojistitutiou  of  the  Dominioti  of  Canada  is  merely  a 
statatory  eiiactirient  of  the  British  Parliament,  ado])ted  at  the  re(pieat 
of  the  several  American  provinces,  but  ue\er  submitted  to  the  Cana- 
dian people  for  ratitication.  (^nc^tions  amendatory  of  the  orjjauic  a<'t 
are  freely  discussed  in  the  lloust;  of  Commons  of  the  Dominion,  and 
can  be  jiassed  up<m  without  any  refereucje  to  the  llritish  Parliament, 
and  without  the  fornmlity  of  a  ratilying  ]K)pular  vote.  Jt  also  appears 
to  be  within  the  power  of  the  several  i)rovinces  to  nidlify  the  constitu- 
tional (I)  powers  of  the  Dominion.    This  has  been  done  rejieatedly.  ^ 


lb'  i 

islid 
•,'l«>n 

,.f  tl 

pall 
of  r 
virt 

r 

*'  fe< 

c.itiv 

cap 

(b'U 

of  ^^ 

exc 

oft 

fori 

of 

aim 

as 

to 

pre 

mu: 

ate 

cis' 

the 


POLITICAL  CHARACTERISTICS  OF   TIIK  DOMINION   GOVl^RNMENT. 

Patterned  after  the  Bntif>h  (bivernment,  but  witliout  its  traditional 
safeguards,  the  Dominion  (lovernmcnt  is  ess«*ntially  a  jiolif ical  party 
g;overnment.  The  administration  of  affairs  has  gravitated  into  the 
most  autocratic  form  of  political  bossism.  This  appears  to  be  the  result 
of  an  organic  dt-fect  in  the(  anadian  system  of  government.  Th*!  ]»arty 
in  power  absolutely  controls  both  the  legislative  and  executive  branches 
of  the  Government.  The  l('a<b*r  of  that  party,  who  is  elected  ])rime 
minister  by  the  Commons,  is  for  the  time  being  autocrat  of  thecouutry. 


PMB 


mmrm 


Rm 


RELATIONS    WITH    CANADA. 


8S7 


111'  in  ,\t  oiu'ii  loader  of  Ir^'isliUioii  and  oliipf  cxccutivti.  Virtually,  Wg- 
islitlivd  I'owcr  is  lodpfcd  oxcluHiviOy  in  tlu^  Iloust'of  '!otiuiuiiiH,  whicJi 
jilonc  i8  t'U'ctivo.  This  (',l>ara«;t«'ri/«'H  Im»Mi  tlio  Dominion  (Jovcirmiu'iit 
;mkI  tlio  i>rovint;ial  j;<»vornnMMitM.  As  tlu'  prinxi  ininiHtor  is  th«;  ioador 
of  tlio  ('«)ninu)ns,  the  oxecntivc  <loTninat«*H  th«'  li'{j:ishitivo  in  iiniHUtaiit 
piirticuhUM.  Acoordinj?  to  onr  jmlitiral  nh'us.  thin  is  the  very  antithesiH 
of  rt'^lxMisibh?  govoruincnt.  Sir  John  A.  Maulh)nald  in  tu-duy  the 
virtual  uiitcxsrat  of  Canada. 

I'roi.  (ioldwin  Snuth  diarartori/.os  the  Dominion  flovfrnnuMit  as  a 
"  fe(l(?ral  reiiublio  with  a  false  front  of  m<Mi;ji('h>.''  '"o  an  American 
(citizen  it  lookH  like  a  tierce  democracy  with  a  monarch i<^a!  leather  in  itH 
r,\\*  and  a  somewhat  idolatrons  fondness  for  tlie  featticr.  If  the  I'resi- 
(h-nt  of  the  ITtnted  Stntcs  werea  political  nonentity,  and  oni-  ►Secretary 
»)f  State  at  once  leader  of  the  llonseof  Hepr<'.Mentativ«'s  and  actual  (jhief 
executive,  onr  (Jovernment  would  resendih'  t  hatof  ( 'anada.  Same  idea 
t>ftlu'  practical  workiufj^K  of  the  Canadian  (Jovcnimetit.  coidd  then  be 
foniM'd,  by  sMpposintJ  our  "i)remier"  going  to  the  Speaker  of  the  Ihtnse 
of  ItcprcHenratives  some  morning,  and,  handing  to  rliat  otilcer  a  bill 
iinuMMliitory  of  the  (Constitution  of  the  United  St.'t<'s.  to  be.  put  through 
as  ii  party  measure,  with  an  .ippropriatiou  l)ill  in  la  •  of  .loctioiis  likely 
to  object,  and  then  stepping  t»ver  to  the  Senate  tiud  infornung  the 
president  (»f  that  body  that  when  the  bill  came  over  fron)  the  House  it 
miiHt  be  put  througli  at  once,  and  witiiout  uel'  '  •.  T.e  Ca'c  -iiau  Sen- 
ate is  not  ele  tive,  ami,  like  the  J3ritish  Homso  of  Lonls,  ii  really  oxer- 
ciscs  no  Mint  pendent  legislative  power.  Such  a  g"  jrnuient,  closely 
pa**"ineil  after  th;  riiunarchi(;al  institutionsof  E-..  o]>o,  cau  never  excite 
rlic  I'uvy  of  the  jieople  of  the  United  States. 

I  believe  that  it  is  j»erfe(!tly  projierto  sny  tiiat  the  Dominion  Govern- 
ment is  essentially  a  confederacy  from  which  any  one  of  the  •,  '  'winces 
may  seee<le  at  plensure,  and  that  the  right  of  secession  is  h(»  cherisucd 
by  the  Canadians  as  to  make  that  sentiment  an  almost  insuperable  ob- 
stacle to  annexation  to  the  United  States.  Their  separatee  and  inJe- 
]ten(h'nt  existence  as  colonies  for  over  one  hundred  years  has  develoi)ed 
a  <U>ci(ied  reinig»ian<;e  to  an  intlissoluble  uiuon.  Something  in  the  nat> 
lire  of  political  regeneration  must  precede  annexation. 

The  peculiarity  of  the  Dominion  Government  which  chietly  all'ects  its 
relations  to  this  country  is  that,  while  in  fact  i)erfectly  indejK'ndent  of 
(ireat  [Britain  in  all  matters  of  internal  and  external  policy,  its  treaty 
relations  are  negotiated  by  Groat  Britain  as  a  mere  "go  bet'.veen."  In 
her  diplomacy  with  the  United  States,  Canada  uses  the  British  Hag  as 
a  screen  behind  which  she  violates  treaty  stipulations,  and  refuses  to 
be  bound  even  l)y  those  reciprocal  relations  of  c^unmerciivl  usage,  of 
comity,  ami  of  common  humanity  which  characterize  the  conduct  of 
civiliz(!d  natious  towani  each  other  at  the  present  day. 

Alter  two  years  of  most  unsatisfactory  corresjmndeiu'e  Mr.  liayard 
lost  all  ]>atieuce  with  the  diplomatic  farce  of  treating  with  Canada 
thntngli  Great  Britain.  In  a  letter  addressed  to  Sir  Charles  Tapper, 
under  date  of  May  31,  1887,  be  said: 

It  is  evident  that  the  comtnorcial  iutorcoiirso  Itotwcoii  tlio  inliabitdtits  of  Csinada 
and  t.lioHe  of  tlio  United  States  lias  grown  i?ito  too  vuHt  proportions  to  l>e  oxposeil 
niiuli  loiif^er  to  this  wordy  triangular  duol,  aud  mort*  tlirect  and  reHpotisihh)  inetliods 
"iioiilrt  bo  ri'sortefl  to. 

I  hold  most  confidently  and  sliall  attempt  to  prove  to  this  committee 
tliat  by  virtue  of  the  superior  uatural  and  acquired  advantages  wliich 
t lie  United  States  possesses  in  regard  to  the  tishcries,  <!ommerce,  navi- 
gation, ana  transi)ortatiou,  the  Government  of  this  country,  by  peiwje- 


;- 


888 


RELATIONS   WITH    CANADA.' 


i  ; 


ful  m«»MuHls  alone,  is  iibhviocxcniso  an  hundrcil  limes  us  nincli  inllnence 
over  tho  coiulint  ol'  the  J)uiniiii<)u  (lovcninu'nt  toward  tlii.s  country  as 
can  j)0S8iLily  be  oxcrcisLMl  in  iluit  direclioii  by  the  Governmeutot'Great 
l>i!taiu. 

1  sliall  «Muleavoi'  to  sliow  o  this  committee  the  practical  bearings  of 
the  foregoing  remarlcs,  Irom  the  consideratiou  of  issues  which  liave 
arisen  in  the  progress  of  events. 

AN   IMPOKTANT    DIKKKKEXCK   WHICH    KXISTS    KKTWKKN  THK  KISCAI    I'OWEllS  OF  THE 
UNITKI)   STATICS   COVKU.NMKNT    iM)  THK  DOMINION   OOVKUNMKNT. 

Mueli  li<:ht  is  thrown  upon  the  subject  of  ourCatuuliaii  n^lationsliips 
by  eonsidering  tlie  radical  ditl't'reuce  which  exists  between  the  fiscal 
jiuAcrs  of  the  I'nited  States  and  Canada  and  the  mamierin  which  such 
])<i\vers  are  exercivsed. 

The  Couslitutioii  of  tlieT^nitf'd  States  allows  the  imposition  of  duties 
upon  impoits  but  loibids  duLics  upon  exports,  and  it  does  not  clothe 
th«*  i'iXecntive  wirli  any  dlNcretionary  powei'  of  changing  the  rates  of 
duties  [)res('iil»ed  by  the  Ifgi.slative  luaiieli  of  the  iroverniuent.  The 
I'Miaiinion  (loveiinnent,  on  the  other  liand,  imposes  duties  u]»on  both 
imports  and  exports  by  statute,  and  besides  the  ailitiinistrative  1  janeli 
of  tiiaf  (iovernmcnt  is  nuhnved  witli  tlie  fu  net  ion  of  raising  or  lowering 
tluties  Irom  time  t«)  time,  as  may  ai)pear  to  be  uecfssary,  in  order  to 
delemi  <  Canadian  inteicsts  <»r  to  take  advant.ige  of  American  interests. 

T'he  customs  law  of  ('anada  embraces  (»V>  [>ages  and  its  customs  tarill" 
n?  pages,  a  total  of  liKi  pages;  wliile  the  Canadian  ''eastoms  orders  in 
eouHcil''  eoiii))rise  KJi.'  pages.  All  of  these  are  ))rinted  in  Imoks  of  the 
same  size  and  type.     Here  are  the  two  books.     [Siiowing  them.| 

This  amplitieation  of  ])owers,  of  cour.se,  gives  to  the  Dominion  (lov- 
enniient  iiiii)oitant  advantages  of  a  tactical  nature  in  its  iulercourse 
Mith  the  liiHed  States.     Forexamjile,  l>y  act  of  18     .Congress 

])laci'd  piiM'  logs  on  the  free  list.  Tliis  was  manifestly  an  act  in  laA  or  of 
the  miibiig  interests  of  this  ♦•ountry.  But  it.  was  at  (Mice  met  by  sin  or- 
der in  council  ])lacing  an  export  duty  on  logs,  in  order  to  pnUect  the 
milling  iiitei  I'sts  of  Canada. 

The  Canadian  duty  on  logs  is  $2  ])er  thousand  and  thcdovernor-Geu- 
eral,  in  council,  is  uuthori/.ed  to  increase  it  to  $.'!  per  thousaiul  at  di»scre- 
tion.  .Soil  i'pi>ears  that  in  our  commei'cial  intercourse  with  CauiKhv  we 
are  (tonllned  to  the  use  ot  the  right  arm  ol  import  ihities,  while  Cunaibi 
may  use  the  right  arm  of  import  duties,  the  left  arm  of  export  duties, 
and  also  have  recourse  to  the  auxiliary  powiu'  of  ''orders  in  council," 
which  may  1  c  regarded  as  a  sort  of  kicking  arrangement.  This  extra- 
or<linar\'  <T|iMi»mcnt  ot  fiscal  jjowers  allows  the  exercise  of  a  degn^e  of 
<'otnmercial  tact  and  acumen  in  diplomacy,  in  legislation,  ami  in  the 
administration  ol'  c.teeutive  duties  which  does  not  inhere  in  the  (lov- 
ennnent  of  the  United  States. 


PIIVSICAL  OITAKACTEUISTICS,  POPULATION,  AND  CLIMATE  O]    CANADA. 

Th.'  Dmuii.ion  of  Canada  consists  of  four  blocks  of  inhabited  territory, 
8eparate<l  In  extensive  inteivening  desert  and  irreclaimabh'  spaces. 
Thesi'  dillerent  seciioiis  ot  nriii.sh  Noith  Ameiica  are: 

First,  the  laaritime  i>rovinces,  consisting  of  Nova  Scotia,  I'rince  Fa\- 
ward  Island  iiud  .New  I'rnnswick  ; 

Second,  Caiuula  proper,  Cxinsisiing  of  the  Provinces  «)f  (^Juebec  and 
Ontario  J 


RELATIONS   WITH    CANADA. 


8S9 


iience 
ti'.v  da 
Great 


iffs  of 
have 


ist'nl 


Tliiid,  Manitoba  and  tho  Northweatern  Territory  j  and 

Fourti],  BritisU  Colnmbia. 

Tliese  inbabited  arcaa,  the  maritime  provinces  excepted,  are  bounded 
(»ii  tho  north  by  a  region  of  eternal  froat,  a  vast  American  Siberia,  and 
on  the  south  by  the  United  States.  They  have  nataially  slight  com- 
mercial relations  with  each  other,  but  geographically  and  commercially 
each  is  closely  related  to  this  country.  Before  the  Dominion  Govern' 
uieiit  was  organized,  the  several  provinces  were  socially,  commercially, 
and  politically  strangers  to  each  other.  Communication  between  them 
is  now  maintained,  chiefly,  through  the  agency  of  two  railroads,  tho 
Intercolonial  and  tho  Canadian  ]*aciHc,  which  subserve  political  as  well 
:i.s  commercial  ends,  f 4>rd  Lansdowne,  Iat«  Governor-( ieneral  of  Ciin- 
iida,  said,  in  1885,  "Confederation  without  the  railway  was  not  worth 
tlu'  paper  on  which  tlu^  Jiritish  North  American  act  was  i)rinted." 
>,\'\vK)iiiMlland  never  joined  the  confederation,  and,  as  the  years  roll  by, 
she  aiiparontly  sees  weightier  reasons  ibr  keeping  out  of  it. 


I 


I 


nng 


POPULATION. 

Tlie  population  of  the  Dominion  <rt' Canada,  in  1889,  was  5,07r>,8,'55  as 
aijfi'inst  <)5,<KK),0()0,  the  estimated  present  population  of  the  United 
St  Ucs. 

The  following  table  exhibits  the  poi)ulation  of  the  various  provinces 
oC  the  Dominion  a(M*ording  to  the  statistical  bureau  of  the  Canadian 
Department  of  Agriculture : 


Provinces. 

r.ipulation 
18H9. 

2, 197,  824 
)  600  r>74 

Provinces.              :   . 

Population 

18AU. 

• 
Oiitnrio 

British  folaniliia 

156.6H 

12i2,  277 

Priuce  Kdwiird  Iftiund     

;U«,  395 
150,  390 

107,  515 

Tdil      

.Mauit(>l)a ..               ..... 

5, 0(5,  855 

The  estimated  population  of  the  State  of  New  York  at  tht;  present 
time  is  about  r),G0(»,0()(),  <»r  nearly  (3()0,00(>  in  excess  of  the  total  popula- 
tion of  the  Dominion  of  Canada. 

in  a  si)eech  delivered  in  the  Canadian  })arliamont  on  the  14th  of 
March,  1888,  wSir  Richard  Cartwright  estimate*!  that  there  were  then 
abont  1,000,000  persons  of  Canadian  biith  nt>w  residing  in  the  United 
Statt\s,  and  that  three-fourths  of  the  foreign  immigrants  into  Canada 
(hiring  a  i)eriod  of  twenty  years,  or  nearly  400,000,  had  crossed  the  line 
and  settled  in  the  UniuMl  States.  The  statistician  of  the  Canadian 
Dei)artment  of  Agriculture  inibrms  me  that  there  are  now  about  78,0(^0 
persons  residing  in  Caiuulii  who  were  born  in  the  "United  States.  The 
tacetious  remark  that  the  best  peoi)le  in  ('anada  come  to  the  United 
States  and  tiie  wor:it  people  in  the  United  States  go  to  Canada  appears 
to  have  a  substantial  basis  of  fact. 

About  9ii  per  cent,  of  the  i)oi)ulation  of  the  Dominion  is  situated  east 
of  Lake  Superior. 

I'opidafcion  in  Ontario  an<l  Quebec  exuends  j'bout  to  the  line  where 
tlie  rigors  of  the  Arctic/  region  repel  the  Angh;  H.».xon  race.  The  same 
is  api)roximately  true  in  Manitoba. 

It  is  a  matter  beyond  all  question  that  .he  severity  of  the  <;limate  of 
iMaidtolm  renders  it  much  h>SK  <lesirii"Mle  as  a  place  of  abode  tlian  the 
contiguous  States  of  Minnesota  and   Nortli  Dakota.     Manitoba  has  a 


mtstp^^mmm'mmB!^^ 


890 


RELA'^lONS    WTTTT    CANADA. 


popnliition  of  only  150,30'),  wlioroas  Mirmesota  lias  a  i)opiiliili(tn  of 
lunirly  1,000,000,  and  North  Dakota  a  population  of  about  210,000.  The 
Dominion  government  has  made  strenuous  efforts  and  has  expended  k, 
large  amount  of  money  in  the  at  tempt  to  induce  immigration  from  lilu- 
rope  into  Manitoba,  but  thousands  of  such  immigrants  have  subse- 
quently found  a  n)oro  agreeable  abode  in  Minnesota  and  Dakota.  The 
experiment  was  tried  with  a  band  of  IceUuulers,  but  they  also  have 
sought  the  more  genial  elimate  and  better  commercial  and  industrial 
conditions  south  of  the  ijiternatioual  boundary  line. 

BRITISH    OOLTIMBIA. 

British  Columbia  occupies  the  entire  ])ortion  of  the  Dominion  of  Can- 
ada west  of  the  Rocky  ^lountaiiis.     It  has   a  genial  climate.     Itsjjop 
Illation  in  18S0  is  stated  at  150,011 ,    The  population  of  the  United  States 
west  of  the  JJocky  Mountains  is  as  follows  :- 

C'lliforuia  (IKS')) 1,07'.1  OflO 

Nevada  (IHH;-.) _ .'.8,000 

Ort'Kt.ii  (lH8r.) ^'V.K-JVi 

WfiMhiii^'t.m  (IH69) lWi,;WJ 

Arizona  (IWSr)) 7(1, (KK) 

Idiilio  (lHri9) lOr.,000 

Utiih  (1MH<») :il  1,000 

Estiiiiatod  increase  siiico  1(^8.5 'J.')0,000 

Total , 2,20i^,H05 

I  shall  hereinafter  show  you  that  by  the  force  of  Canadian  and  Jlrit- 
isli  commercial  and  naval  subsidy,  backed  uj)  by  a  military  dis))lay  at 
Esquimault,  on  the  Island  of  Vancouver,  an  attempt  is  being  made  to 
break  down  the  sliipping  and  commercial  interests  of  this  ])opn!ation 
of  ours  of  over  L',000,000  on  the.  L'acitic  coast  in  favor  of  the  foreign 
commerce  and  shipping  interests  of  a  Canadian  Pacilic  coast  poi»ulation 
now  estimated  at  150,011. 

INPLTJENOE  Wlircir  THE  INTEREST  OF  THE  DOMINION  GOVTCRNMI-NT 
IN  TRANSrOBTATTON  LINES  EXERTS  UPON  IT.S  RELATIONS  TO  THE 
UNITED  STATES. 


The  relations  which  the  Dominion  of  Canada  sustains  to  the  United 
States  are  largely  determined  by  the  character  of  the  Canadian  gov- 
ernment as  a  builder,  oAviu'r,  manager,  an«l  jjronioter  of  trans])ortation 
lines,  both  for  commercial  and  political  purposes.  Tlie  (rovernrnent 
of  the  United  iStates,  on  the  other  hand,  in  dealing  with  t]\('  subject 
of  transportation,  has  confined  itself  almost  entirely  to  the  regulation  of 
the  railroads.  It  has  never  become  an  owner  or  prac.tical  nuuiisger  of 
such  lines,  but  has  left  that  entirely  to  private  enterprise.  A  pro])er 
appreciation  of  the  im])ort  of  the  relations  sustained  respectively  by 
the  two  adjacent  countri«'s  to  transportation  lines  is  essential  to  aCor- 
rect  understanding  of  the  whole  sul)iect  of  the  relations  which  exist 
between  Canada,  and  the  United  States.  This  1  hope  will  become 
clearly  apparent  from  the  following  statement  as  to  the  interests  which 
the  Canadian  government  has  in  traiisportation. 

The  most  important  of  the  administrative  oftioes  of  the  Canadian 
government  is  that  of  railways  and  canals.  It  is  presided  over  by  a  cabi- 
net minister,  and  the  operation  of  the  government  lines  of  transporta- 
tion is  supervised  by  a  chief  engineer  and  general  manager.  Sir  John 
A.  Maciionald,  premier— the    uncrowned   king  of  Canada— now   has 


RELATIONS   WITH    CANADA. 


891 


cliargo  of  {ho  portfolio  of  railways  and  canals.  The  fact  of  chief  im- 
jiortiUice  to  be  kept  in  mind  in  tins  wiiole  discussion  is  that  the  l>omin- 
idii  {jovcrnmcnt  is  about  as  mnch  a  coujmerciijl  and  transi)ortation  cor- 
poration as  a  political  corporatio'i.  Tliis  causes  it  to  bo  inherently  ag 
grcssive  toward  American  conmicrcial  interests. 


y. 


CANAIMAN   flOVKUNMKNT   CANALS. 


Altouttlie  time  when  the  State  of  New  York  embarked  in  the  work 
(»l'  (•onstructinf]^  the  Krie  Canal,  Canada  began  the  construction  of  her 
xv>!tem  of  canals  connecting  Lake  Eri«'.  with  ocean  navigation  at  the 
port  of  Montreal.  This  was  accomplished  by  the  construction  of  the 
Wclhuul  Ca.nal,  which  ovcrcoioes  the  fall  between  Lake  Erie  and  Lake 
Ontario;  and  the  system  of  St.  Lawrence  Kiver  ('anals,  wliich  over- 
(•(•iiu's  the  rapids  in  the  St.  Lawrence  River  between  Kingston  and 
Montreal. 

Tlic  governments  of  Canada  and  (rreat  Britain  have  also  had  a  direct 
interest  in  Canadian  canals  with  reference  to  military  objects.  I  refer 
especially  to  the  Ottawa  and  Itideau  canal  system,  which  was  con- 
structed between  Montreal  and  Kingston,  mainly  for  military  purposes, 
ill  view  of  the  fact  that  the  St.  Lawrence  Canal  is  too  much  exposed  to 
an  att;n!k  from  the  United  States. 

The  canal  system  of  Canada  cost  a  little  over  152,000,000,  aud  it  is 
.still  owned  and  o])erated  by  the  Dominion  (lovernment. 

The  Welland  and  St.  Liiwnuice  ('anals,  which  form  the  most  impor- 
tant part  of  these  work.*,  comitete  with  Ibe  Erie  Canal,  and  with  the 
<';ist  and  west  truidv  lines  «:f  the  United  States. 

The  cost  of  maintaining  an;'  op^'r.iting  the  canals  of  Catiada  cotisid- 
erably  exceeds  the  revenues  derived  from  them.  This  is  shown  by  the 
following  table : 


Year  ended  June  30- 


1SH7. 
1N)9. 


Total. 
rociMpt.s. 


$;!.->;i,  111 

37ti.  280 


Expondituros. 


"^^^  Constmotlon. 


^m.  709 


TotHl. 


I 


.$1,87.^1  in 


$2,  357, 902 
1,  0(-l>,  369 


This  clearly  indicates  that  the  canals  of  Canada,  like  those  of  the 
State  of  New  York,  arc  oi)ciated  in  th  >  public  interest,  aud  not  as  a 
source  of  revenue.     ,     .  .       ■        .   , 

CANAPIAN"   GOVEKNMKNT   UAIf.ROAnS. 

The  Dominion  Government  owns  and  operates  the  Intercolonial  T^ail- 
way  sysNMu,  the  main  line  of  which  extends  tVom  Point  Levis,  opposite 
sMu'bcc,  to  lialifax.  The  total  length  of  lines  comjto.'^ing  this  s\  stem 
is  i,;r»liiii!('s.  its  total  cost  on  the.'JOth  of.Iuue,  ISST,  was8l4,<M>r>,0;j2. 
file  vvoikiuge.\pen.s«».H  of  the  system  exceeded  its  gross  receipts  in  1887 
ity  the  ,suin  of  *'j;i2,10G. 

The  Jntercolonial  is  essentially  a  political  railroad,  conneciting  the 
iiiiiritime  Provinces  with  Ontario  and  (Quebec.  Its  construction  was 
one  of  the  essential  comlitions  of  the  British  North  Anieiican  act,  or 
so  called  ('anadian  "constitution,"  by  which  tlie  British  Provinces 
were  confederatetl  under  the  Dominion  Government. 


i 
i 


892 


RELATIONS    WITH    CANADA. 


THK  CAKAPIAN  PACIFIC   RAILWAY. 


The  close  relation  of  interest  existing  between  tlie  Dominion  Govein- 
nient  aiul  the  Canadian  Pacific  Railway  Conii)!iny  constitntes,  Jiowever, 
by  tar  the  nioHt  important  fcatnro  of  the  political  relations  sustained 
by  Canada  to  the  United  States. 

In  the  annual  report  of  the  mijiiater  of  railways  and  canals,  the 
Canadian  Pacilic  is  <',lassed  as  a  j^overnnn-nt  railroad. 

The  Canadian  Paeilie  Uaihvay  with  its  connections  east  of  Matta- 
wamkeajr,  Me.,  extends  across  the  continent  from  St.  eJohn,New  Ilrniis 
wick  to  Vancouver.  It  has  a  total  niileaj;e  of  4.0.^8  miles.  Its  eojistrne 
tion  was  an  intejrral  feature  of  the  schenu?  of  confedenUion,  wherel^\ 
the  British  North  American  Provinces  wtire  unit-«>d  under  the  Dominion 
Government  on  the  Jst  of  .Inly,  18(57. 

The  total  railroad  mileage  of  Canada  is  ]  2,701,  and  may  be  classe<l  as 
follows : 

Lines  ownwl  by  the  Govcrnmciifc I,  ;'.;">( 

('aua<liaii  Pa<itic  Railway 4,'J5S 

All  otluT  lincH .' ('.,  :{M) 

Total 12,7(11 


COST  OK  GOVKUXMENT  RAILWAYS  AND  CANALS  TO  TMK  PKOPI.R  OK  CANADA. 


In  the  construction  of  lier  canals  and  railways,  Canada  has  expended 
in  cash  over  $2()0,()0(),(U)0,  and  has  granted  exemptions,  franchises,  and 
gifts  of  laud  whicli  swell  the  total  value  of  governinental  subvention  to 
considerably  over  8  50O,()00,O(M>.  How  intinnitely  the  Canadian  trans- 
jiortation  system  is  related  to  the  Canadian  jwlitical  system  is  evidenced 
by  the  fact  that  in  r)rder  to  secure  it  the  people  of  Canada  have  submitted 
to  a  bur'I.-n  ofdebt  proportionally  cijual  to  the  burden  of  dc^bt  assumed 
by  the  people  of  this  country  in  order  to  save  the  American  Union. 

It  is  my  'inn  belief  that  if  the  present  administration  of  governmental 
affairs  in  ('anada  should  go  uut  of  power,  by  the  death  of  Sir  John  A. 
MacDonald  or  otherwise,  any  political  party  Avhich  should  attempt  to 
rt'veisethis  political  transportation  policy  of  the  Dominion  Goveinment 
would  be  unable  to  retain  power  for  six  months,  so  intiinately  has  ibis 
p(dicy  \»ecome  identiiicd  with  the  conunercial  and  industrial  interests  of 
the  peo])le,  and  interwoven  into  the  very  fabric  of  their  governmental 
institutions. 

'L'he  public  debt  of  Canada  increased  from  $9;3,0(>0,000  in  1807,  the 
year  of  confederation,  to  $235,107,04S  November  oO,  1880.  This  inci  ease 
in  the  Dominion  debt  was  due  chieily  to  the  construction  of  railroads 
since  the  Dominion  Government  was  foinied  in  I8ti7. 

It  is  ditlicult  for  us  even  to  estimate  the  force  of  the  public  sentinuuit 
which  has  created  this  great  public-  debt  of  Canada,  or  to  measure  its 
sif^uilieaiu'.eas  an  element  of  aggression  ui)ou  the  commercial  and  trans- 
portation interests  of  this  country. 


TIIK   OIIARACTEB  OF  OUR  RELATIONSilll'S  OP  TRANSPORTATION  WITH 

CANADA. 


It  aj)pears  evident  from  what  has  just  been  said  that  when  we  come 
to  consider  the  (pu'stion  tjfour  relationships  of  transportation  with  Can- 
ada we  nuist  renu'inber  that  weared«'aling  not  only  with  a  government, 
lint  with  a  great  system  of  transpt>rtali(in  backed  u})  by  that  government 
and  sharply  c(unpetiug  with  the  commercial  and  transportation  interests 


RELATIONS   WITH   CANADA. 


893 


(»r  tlii>  FTiiif«Ml  States,  [ftlie  Doniiiiioii  of  Canada  were  as  completely 
«liv(H<;o»l  liiMU  theactuiil  coiidiict  ol'roiininMcial  alVairs  sis  Ih  the  UnittMl 
Hliites,  our  Canadian  ivlationsliipt*  would  be  purely  ])olitical  relation- 
slii|)s,  bur  t!io  diHiculty  involvt'd  in  tbeca.se  is  that  the  United  8tatos 
Gnveinuieuu  in  its  foreign  policy  is  ingenuously  political,  while  the  for- 
<i,uii  policy  of  the  I>ouiinion  Goveninieut,  from  the  eoinpulsioii  (»f  polit- 
ioai  a?!d  couinieicial  forces  and  of  tinaucuil  obligation  in  transportation 
lines,  is  intt-nsely  coujiuercial.  This  assumption  by  the  Dominion  Crov- 
erniiient  of  resimnsibility  for  tht)  commercial  success  of  the  country  of 
course  Itrinji^s  U>  bear  upon  that  p)\erunienta  pressure  the  compulsive 
|i»ice  of  which  wo  can  form  no  conception  in  this  counti'y.  The  man- 
a.i^einent  ot  transport.itioii  has,  in  fact,  become  a  i)ublic  function  inter- 
woven into  the  social,  political,  and  cumuiercial  life  of  the  people  of 
Canada. 

r,y  virtue  of  the  fact  that  the  Dominion  Cuvernment,  or  rather  the 
political  party  in  power  in  Canada,  has  become  r(\sponsible  to  the  peo- 
ple, not  oidy  for  tlte  financial  success  of  canals  and  railroads,  l>nt  also 
in  a  lar;;e  dej^ree  lor  the  commercial  prosjterity  of  the  country,  that  Gov- 
ernment is,  from  the  very  force  of  circumstances,  driven  to  all  those  ctui- 
muii  expedients  commonly  resorted  to  by  competitors  in  commercial 
uiKlertakings.  ^'o  such  rcsi»on8ibility  attaches  to  the  Government  of 
tile  I'nited  States.  The  coercion  of  jmblic  sentiment  forces  the  Do- 
minion (lovernment  to  be  commercially  aggressive  toward  the  United 
i>tates,  and  I  am  incIine(fT:o  believe  that  it  is  l)y  the  vigorous  prosecu- 
tion of  such  a  line  of  policy  that  the  political  party  now  in  power  in 
(anada  has  so  long  held  the  reins  of  government. 

Ijvidently  it  is  impossible  for  the  Canadian  Government  to  enter  into 
;m\  treaty  agreement  with  the  United  States  which  would  relieve  it 
from  ilie  necessity  of  recourse  to  all  these  laetical  and  strategic  expe- 
dients to  which  rival  trunk  lines  everywhere  compete  and  war  with. 
eacii  other.  This  is  precisely  the  thing  against  which  the  Government 
ot  the  I'nited  Staf«'S  is  now  called  upon  to  protect  American  interests, 
and  this,  as  I  apprehend  the  case,  mainly  defines  the  work  devolving 
ui»on  this  (jommittee. 

The  circumstancos  and  conditions  Just  described  give  a  very  peculiar 
character  to  our  Canadian  relationships  and  render  it  much  more  diffi- 
cult for  us  to  enter  into  fair  treaty  arrangements  with  Canada  than 
witli  any  nation  on  the  globe. 


I 


the  aggressive  political  and  military  cnaracter  of  the 

4:janadtan  pacific  railway. 

The  Canadian  PaciQe  Railway  was  conceived  by  the  leaders  of  the 
)«)Iitical  party  v.-hich  li;is  been  in  power  in  Canada  since  July  1,  ]S(>7, 
witli  the  exception  of  the  interval  of  live  years  from  1.S73  to  187.S. 
Those  genth-men  clearly  saw  that  the  tendency  of  the  tra<le  of  all  the 
r.ritish  North  American  Pntvinces  iswith  the  United  Stales,  and  that  thiij 
if  unrestrained  would,  in  time,  be  likely  totievelop  a  sentiment  in  favor 
of  annexation  to  this  country.  They  therefore  resolved  to  embark  in 
an  enterprise  which  would  change  the  course  of  the  commercial  and  ])o- 
litical  development  of  their  country.  This  schemi?  embraced  the  con- 
stiuction  of  both  the  Intercolonial  and  the  Canadian  Picitic  Railways. 

it  was  originally  determined  that  both  these  railways  sliould  be  con- 
structed by  the  Dominion  Government,  aid  be  owned  and  operated  by 
it,  tU«  bdioi'  being  eutei'taiued  thjvt  the  t-wu  liues  would  be  able  not  only 


894 


KKLATIONS    WITH    CANADA. 


!i 


(' 


to  overcome  the  force  of  iiaturul  coninu'rcial  jifliiiities  tow.ird  the  United 
States,  but  that,  in  coniMTtioii  with  subsidized  Jiritiish  Ntejuner  lines  on 
the  Athiiitic  and  on  the  I'iwiric,  they  wouhl  be  of  jmwer  to  deflect  and 
to  control  u  considerable  }»ortion  of  the  domestic  and  foreijjn  (ioniineice 
of  the  United  Htates.  This  was  a  boUl  scheme,  but  it  was  conceived  by 
bohl  nu'U.  The  acknowkul^ed  k'ader  of  the  movement  was  Sir  John  A. 
Macdonahl,  now  and  for  many  years  premier  antl  dictator  of  the  poht- 
ical  fortunes  of  Oanada.  ^o  abler  or  more  adroit  statesman  and  politi- 
cian has  ever  ludd  the  reins  of  political  power  on  this  continent. 

The  Canadian  Pacific  Railway  was  publicly  advocated  in  Eu}?land 
and  m  Canada  in  the  early  part  of  our  late  civil  war,  upon  military  as 
well  as  commen'ial  and  i)olitical  considerations. 

lu  1.S61  the  Duke  of  Newcastle,  then  a  nuimber  of  the  British  cabinet, 
declared  that  the  Intercolonial  Kailway  "  satisfie<l  military  and  otiu^r 
conditions  in  tne  interest  of  the  Empire,"  and  on  the  3d  of  Januiiry. 
IStvi,  while  the  war  of  the  rcV)ellion  \\as  rafjinj;  in  this  country,  he  de- 
clared in  the  House  of  Lords  that  au  interoceanic  raiJw.iy  throu^^ii- 
British  North  A nuM'ica  would  subserve  important  ends  '' in  the  event 
of  war  on  the  other  side  of  the  Atlantic." 

In  1.S02  Sir  E.  Buhver  Lytton  advocated  the  construction  of  the 
two  political  railroads  of  Canada  "lor  imperial  interests,  commercial 
and  military." 

Sir  Edward  W.  Watkin,  who  has  for  many  yc^ars  been  a  member  of 
the  British  Parliament  and  has  crossed  the  Atlantic  Ocean  thirty  times 
in  thirty  live  years  on  i)olitical  and  commercial  errands  connected  vith 
C/aiiadian  confederation  and  tho  construction  of  the  political  raikoads 
of  the  Dominion,  in  a  book  published  about  two  years  ajio  declares  that 
he  is  "  an  Imperialist ; "  that  he  *'  hates  little  Enfjlandisui ;  "  that  ho  has 
been  laborinj,^  these  nniny  years  "  in  the  cause  of  permanent  British 


rule    over    the  lar;jfer    part  of    the 


{ireat 


northern    continent    of 


America;"  that,  in  his  opinion,  the  Canadian  Provinces  oujjfht  to  be 
come  "liidvS  in  a  chain  of  iiritish  nations  ;  "  and  that  "  a  lineol"  military 
])Ost8ofstreii^'rh  and  magnitude,  beginning  at  Halifax,  on  the  Atlantic, 
and  ending  on  the  Pacitic,  will  give  power  to  the  Dominion,  and  wher- 
ever the  red  coat  ai)pears  confidence  in  the  okl,  brave  (country  will  be 
restored." 

About  three  years  ago  Sir  ,Iohn  A.  Macdonald  divnlged  to  one  of  the 
editors  of  the  I'all  .Mall  Gazette  the  politico-ciommercial  idea  upon  which 
the  whole  Canadian  Pacitic  Hallway  enterprise  is  based.  lie  devscribed 
it  as  a  railroad  extending  from  ocean  to  ocean,  and  superior  to  the 
American  roads  by  virtue  of  that  fact,  and  the  fact  that  it  enjoys  a  mo- 
nopoly of  the  transcontinental  traflic  of  Canada.  Then,  in  an  (nitbnrst 
of  enthusiasm,  he  announced  the  fact  that  he  was  an  imperial  confed- 
erationist,  and  a  tirm  adherent  of  "Greater  Britainism."  deferring  to 
the  (.'anudian  Pacitic  Railway  as  a  part  of  au  enormous  political  scheme 
he  said; 

With  I'^uftlaiul  an  u  ccutral  power,  with  Australia  and  Sontli  Africa  as  aiixiliarioH, 
we  (fliH  C'otitVikTdtod  lirit-Hli  Kiiipire)  must  eoiiirol  tlio  sons,  ami  tlic  I'diitiol  of  the 
sea  iiu'.ins  the  cinitro!  ol  t!ir  woild. 

The  leaders  of  the  [)olitical  party  in  power  in  Canada  to-day  make  no 
attempt  to  disguise  tlieir  i»nri)ose.  The  "  Hand  Ho(d<.  of  Canada"  re- 
cently [)ub!ished  by  the  Dominion  Government, states  that  the  Canadian 
Pacilic  was  constructed  "'in  the  interests  of  the  empire  at  lai;j;e,  as  W(d] 
as  those  of  Canada,"  and  it  adds  that  if  these  far-seeing  plans  had  been 


RELATIONS    WITH    CANADA. 


895 


taken  up  when  lirst  mooted,  "Canada  would  hiive  btjon  at  leawt  two 
;,aMierations  in  advance  of  her  i)re8ent  position,  while  'Greater  Britain' 
(/'.  r.,  British  imperial  confederation)  would  have  been  in  a  much  hipfher 
suite  of  development  than  it  is."    This  siguilicant  remark  also  follows: 

Tt  wiih  tt  siiifrular  c(»inci(l<»n(;o  uud  porh.ipH  a  proplietic  omen  (tl"  tlio  fntiiro  itniM;rial 
iiii|><.it(iii(UM>t'  tluH  riiilway,  tliat  tho  flint  loadod  train  that  invHseil  over  ir.sontim 
li'iixl  li  fiDia  ocoau  to  ocean  wan  freighted  witli  iiiival  stores  belonjriiig  to  tlio  inipuriul 
WAV  (lopartuiciit,  transrenod  from  Quebec  to  Vuucouvor. 

Ill  speaking  of  the  negotiations  for  a  British  subsidy  in  fiivor  of  the 
Canadian  Pacitic  steamer  line  to  China  and  Japan,  the  [)resi«l(}iit  of 
that  railroad  said  in  his  annual  report  for  1887 : 

I'lii)  imperial  iutercHts  involved  in  tbis  ([ueution  are  no  iiuportaut  tliut  there  can  be 
lifili'  doubt  ofa  suti.st'actory  rtisnlt.  , 

That  anticipation  was  realized. 

I'licsc  facts  clearly  prove  the  [lolitical  character  of  the  Canadian 
J'acitic  llaihvay  and  seem  to  raise  the  question  as  to  whether  the  United 
States,  or  :i  confederated  British  Empire  is  Anally  to  secure  commercial 
sti|)rema(;y  on  this  continent. 

The  degreo  of  success  already  achieved  by  this  gigantic  Canadian 
uiiiler(aking  seems  to  throw  a  new  light  upon  the  subject  of  the  iuflu- 
ciiw  of  political  forces  upon  the  course  of  commercial  movements. 


.     I 


AID  EXTENDED  TO  THE  CANADIAN  I'ACIFIO  IIAILWAY  BY  THE  DOMIN- 
ION GOVJOUNMENT. 

The  Intercolonial  liailway  was  built,  and  is  still  owned  an<l  operated 
by  the  Dominion  (lovernment.  It  was  the  oiigimil  intention  to  adopt 
(lie  same  plan  with  reference  to  the  construction  and  operation  of  the 
('aiiadian  l*acitio  Kail  way,  but  in  consecpience  of  political  scandal  con- 
ceiniiij;'  the  linancial  management  of  the  Canadian  Pacitic,  Sir  John 
A.  JMacdonald's  party  was  dethroned  in  1873.  Five  years  later,  how- 
ever, in  1878,  he  triumphantly  return(^(l  to  power  on  the  very  line  of 
railway  policy  u[)ou  which  he  had  originally  embarked  the  political 
fortum\s  of  his  party.  But  in  conse(pience  of  the  complications  in- 
volv('(l  in  the  jiolitical  collapse  of  1873,  it  was  found  expedient  to  com- 
mit the  construction  and  management  of  the  road  to  a  private  corpora- 
tion, the  Canadian  l^icilic  Bailwaj'  Coini)auy.  This  corporation  em- 
barked in  the  work  of  coiistriu'tioii  May  2,  1881. 

All  the  works  completed  and  in  progress  at  that  time  under  gov^erri- 
Dientid  control  were  turned  ever  as  a  free  gift  to  the  newly-formed 
c()ini)iiny.  The  total  value  of  these  particular  works  is  estimated  at 
!!f3r>,0()0,U(>(). 

From  the  beginning  the  Canadian  Pacific  Kaiiway  Company  has 
been  the  alter  ego  of  the  Ucmiinion  Government  in  all  matters  touching 
its  relations  to  the  commercial,  transportation,  and  navigation  interests 
ol'ilu'  United  States. 

As  a  purely  commercial  enterprise  the  great  transcontinental  rail- 
road of  Cana<la  hail  no  raison  d'etre.  No  financial  house  or  syiulicateon 
tile  <;Iobe  would  have  attempted  to  float  its  securities,  nor  would  have 
U'nt  it  a  dollar,  and  it  exists  today  merely  as  tlie  ollsi)riug  of  Canadian 
political  devisement  and  subvention. 


896 


I.'KLATIONS    Willi    C'ANAI»A.. 


Tlu^  (ollowiii;'  tiible  iiulicatt'N  tlio  Mibvciitions  of  viiriouH 8ort«  wiiit'i 
ciiUcd  tlu' (.'niiiMliaii  L^icilic  Hjiihvny  into  lu'liij;: 

Hrr'tMil  Mlimitlr  of  iii/lnfioiH  the  Dominion  (ItinriiniDil  In  the  ('{tvddiun  Vndjif  A'ui.'k.h/ 
( 'onki>nini,  ouil  HCfiirititH  which  thiil  rnmiiaiifi  him  turn  (iitihUd  to  Jloal  (sioekaiitl  l>(iii(ls\  ,t.- 
the  remtil  of  the  Domiu'DU  tiiKirauIji  auil  tht  Innd  yraitt  of  2r),(i()l),li0(>  lu-icn  of  linid  . 

('null  Miil»siili<'R  as  follows: 

(ii)  Siil.Hidy  of!C'-.'r>,(l<K),(t<»0  mentioned  in  Hcction  '.{of  net  of  Foliruary  15, 

li^>l  ;  (/i)  711  inilcN  of  niilroad  coiiMtiiutrd  Ity  thf  Dominioii 

(ioscrniiuMit.  ••oslin<{  .ijiiojlMX),! )()(),  wliidi  wis  itr(W!iit«;d  to  tho 

Cjuiiulia?)  i'riritic,  CoiMpJiiiv  .is  a  «:i ft,  will)  iiitrrcst  to  .hmo  :)l), 

1-i-:.     (Sec  I'lildic  Accounts  of  Cjuiiidii  for  Iri,-^?) $()l,7liU,7f;5 

(.'iJliiliil  slock  ori;j[i;i;illySlO(»,(H)0,()(»(),  Imt  rcdiic.-d  lo  JJ^.M.OOO.dttO,  with  a 
tlividfiKi  of  :?  pi.r  cont.  j;uar;intifd  for  ton  years.  (S<'o  Poor's 
Manual) (55,000,000 

Dnrinj:  tlio  session  of  Parliament  of  1S84  tlie  Dominion  (Jrovemnient 
antliori/eil  a  loan  to  the  conii«any  of  $2i),H.S(),UHi,  to  h  •  paid  as 
the  work  of  constmetion  eontinned,  and  for  the  i»iiriios(f  of  ox- 
pedirin;^  "onstrnerion.  Of  tins  anionnt  $i>,Hr<0,'J12  in  seeniod 
liy  liiri  on  t  lie  entire  road  and  land  grant  snbjeet  to  the  then  • 

oMtstHiidin;^  land-,i;rant  bonds;  also  jiovernnn-nti  lionds  to  tho 
.iiiio:iiil  of  *.*U,(»liO,000.  which  were  <-xclian<;ed  for  a  like  anionnt 
of  I  lie  company's  loan  of  ,*i;{.'i,(ifM),0()0,  which  had  Ixcn  i.vsned  in 
the  place  of  the  aS'''''>,00(i,00(J  of  «n-iyinnl  stock  whieli  had  been 
retired.     (See  Hec.  4,  act -JOJiiiy,  IHB.')) 21>,8dO,i>PJ 

Bal.mce  of  ,|;:'m'),(»i((,(IOO  loan,  after  (lednctinji;  !t;viO."M)(t,()(iO  plai-cd  in  tlie 
hands  of  tlie  ;j;ovi'rnnieut,  in  order  to  seenre  tlie  $'20,00(),OUO 
boiids  above  montn)iu'<l 15, 000,000 

Lanil-grant  Imnds  issned  by  the  company  as  a  lieu  n|)on  tho  landH 

whi'h  it  acquired  l>y  is,iit  of  thi^  Dominion 25,  OOO.OitO 

IJotnlB,  intiTi'sl  j^narantied  by  the  Dominion  (or  fifty  years  at  :'i  p<  r 
cent.,  issne<l  to  the  comjiany  for  tho  purpose  of  renmneratinj;;  it 
for  the  loss  of  its  rcliniinisliment  of  tho  tnonop<dy  of  railroad 
bnildinj;  in  M     liKdia 15,000,(100 

Subsidy  of  1^l-(.i,000  a  j(  ar  for  tweniv  yosirs  to  liuo  tbron{;li  tlie  State 

'  of  Maine ". n,720,(M»o 

Total *J15,:;(il.(iltT 

Of  this  tottil  sum  iiV)()iit  llO."),!)!)!  1,000  may  be  classtMl  as  casli    aiul 
gifts  avail  ible  as  eusb,  and  8110,000,000 as  <:-tiaraiities  of  secniitios. 

Tln'  ])icsi(b'iit  of  tlic  Caiiailiait  I'.icilic  Jlaihoad  lias  comiccUMl  lliaf 
tliis  is  a,  (.'onvct  statoineiit  of  ilirect  aids  \vbii;lt  tiic  company  has  i\- 
coivi'd  fi'out  thti  Dominioii  (rovcrnnuMit.  .Vcc-oiding  to  lh<'  lia'atnH'  sheet 
of  tlie  company  for  December  'U,  18SS,  the  total  cost  of  llie  foad  ;.iid 
its  e(iuiiimeiit,  |)lant,  materials,  atid  supjilies  was  $l<i7,Ol);3,S9r).  Tiie 
total  stock,  bonded  debt,  and  cuncnt  liabilities  of  the  <!ompany  on  the 
same  day,  amounting  to  $l^l,;'.r>0,010.  The  various  aiils  received  from 
the  Dominion  (lovcrument  at  tlu'ir])ai-  vabu'  was,  therefore,  $48,'.i!()7,JS0li 
in  excess  of  the  cost  of  the  road,  and  881,011.078  in  excess  of  its  lia- 
bilities. Even  estimating  that  tlie  aids  received  from  the  company  re- 
alized to  it  only  t)0  per  cent,  of  their  face  valm>,  the  total  value  of  sub- 
vention largely  exceeded  both  the  cost  of  the  rotul  and  the  preiseiit 
liabilities  of  the  comin\ny. 


M 


CONCESSIONS  AND  FUANCULSES  GRANTED  TO  THE   CANADIAN  rACIJ^IC 
RAILWAY  COMPANY  BY'  TIIE  DOMINION  aoVKKN:\IKNT. 

The  various  concessions  and  fraiudiises  conferred  by  the  Dominion 
Government  uiiou  the  Canadian  racilie.  Uailway  Coniiiany  are  enumer- 
ated as  roll(»ws : 

(ai  Dire(!i  gifis  of  money,  land  grant,  and  other  privileges  sviiich 
have  become  available  as  t.xAh  ussela  iu  the  procef'bes  of  fiuuliug  aa 
before  Stated,  $105,UOO,OUU,     ■•  • 


KELATIONS    WITH    CANADA. 


897 


{!>)  P.oiuls  iind  s(o(;k  puaianticjd  by  (ho  Dominion  (lovcrnniout,  as 
iM-luicstafnl,  .S1HM)<»0,00(). 

!<■)  Ilx^'iiiptioii  lioiu  luxation  by  Dominion  luul  Provincial  CJovern- 
iiit  Ills  for  all  time.  Ah  tiie  taxes  of  botli  tlio  Union  Pacific-  Jfajlway 
:iii(!  llio  SoatluTii  Pacilii!  (\)n)pany  exceed  $l,()(M),000a  year  (see  Poor's 
Miiiiu.il)  I  as.siinie  that  the  (Janadian  Pacilic  taxes,  remitted,  would 
ainoiiiit  to  at  hjast  $000,000  a  year. 

{il)  Ilcmis.sions  of  duties  on  rails  and  all  imported  material  amounting 
to  at  I'list  $7,0(M».0(M). 

(<)  Protection  ii<;ainst  the  construction  of  competing?  lines  for  twenty 
yt.iix.  The  value  of  tliis  (ton(!ession  can  not  be  estiniated.  To  an 
Aiiiciifiui  line  it  woidd  c«n»stilute  the  guaranty  of  a  fair  rate  of  interest 
oil  Its  co^t. 

(/■)  'flie  Dominion  (ioveiiiment  has  granted  an  annual  subsidy  of 
iilM(;,"(Mi  :i  yeiir  to  the  i>orti(»n  of  the  line  of  the.  Canadian  Pacific  Ifail- 
\v;iy  which  extends  across  the.  JStale  of  Maine,  'i'he  obvious  effect  of 
this  litie  will  be  to  divert  American  an<I  (Canadian  connuerce  from 
boston  and  from  Port  land.  Me. 

it  npptiar.s  safe  to  say  that  the  total  value  of  all  these  gifts,  privileges, 
fxeiriptions,  franchises,  and  guaranties  of  credit  can  l»e  eslimatCMl  at 
!?■_'.")( >,o(  10,000.  If  similar  grants  had  bet  u  nnidc  sixteen  years  ago  to  a 
i;iilr.>ad  corporation  in  tlie  United  States  their  value  to  (lav  would  bo 
ovtr  ■'?;-150,000,000. 


M 


Ulr 


now  THE  DOMINION  CrOVERNMENT  BY  !?TATTTT0BY  ENACTMENT  AIDS 
TUi:  (CANADIAN  K.VILEOADS  IN  OOMPETINd  Wrj'll  THE  RAILROADS 
Ol<'  THE  UNITED   STATES. 


\\lulc  the  interstate  commerce  act  of  the  United  8tatcs  operates  as 
a  u'straint  upon  our  railroads  in  their  attempt  to  meet  the  competition 
of  Canadian  lines,  the  laws  of  Canada  by  s|)ecial  statutory  exemi)tion 
aid  die  railntads  of  that  <*Mintry  in  their  persistent  elibrts  to  encroach 
upon  Anieric'iu  railroads.  This  tact  is  i-lcarly  set  forth  i)y  the  Inter- 
state Commerce  Gomuussion  in  its  recently  publisljecl  third  annual  re- 
poit.     iteferiing  to  the  Canadian  railroads  the  Commission  says: 

i'licy  !in'  ))iactir;illy  und^r  no  nstrictioiis  iiiiposi'd  l)y  th<>ir  own  rttatute.sin  respect 
to  loM>;  iuid  sliort  liaiil  Irattic,  Imt  arc  at  lilieity  to  cli.-iri^c,  IurIi  rattss  on  iociil  l)UKi- 
iji  ^^.  to  indi'innify  for  looses  on  tliroiigli  or  JnO^rnational  IxiHiness.  Their  niana<;(;r8 
di'iiy  Willi  ln<lI•(^  o?-  Icsn  oini)li.i,si,-<  tliat  their  local  trivtlic  is  8ul)ji'Ct(<l  to  lii;;licr  rate,-*, 
't'lt  wlitMi  Mu*  lilicrly  to  uialic  nncli  cliargcs  and  tlic  m-c'ssity  for  it  to-cxist,  (lie  iu- 
li'icc'iii'iit  at  least  !8  strong.  'J'lic  ])rovision8  of  the  C'ana<lian  statute  on  this  snl'Jcct 
ail'  ;is  lullowH : 

"  Si;(-.  i>"^ti.  The  company,  in  lixing  or  rofjuiatinjj  the  toils  to  be  dernandedand  taken 
fii'-  (III'  tr.'iiiHportalion  of  woods  shall,  except  in  re,sp(iet  to  thron/ili  tratlic  to  or  from 
the  I'liiled  State's,  adojit  and  conforni  to  any  uniform  clansilicatinn  of  freifjht  whicli 
the  s^dvernor  in  council,  itn  tin-  report  of  ihciiiiniHter,  from  time  to  time])reMcribc8. 

■  Skc.  'S,\2.  No  eonipauy.  in  tisinii  I'n.v  toll  or  rate,  shall,  under  like  oonditionN  and 
<  iiemiistaiices,  iiiak«^  any  utijii-;!  or  |)artialiiiscriniinati(mbpt  ween  different  localities; 
bill  no  ili.-^eriniiiiatHni  lietweeii  localities,  wliich  t>y  reason  of  coiupetition  by  water  or 
iiiiway,  it  is  necessary  to  make  to  secure  tratlic,  sliall  be  doonicd  to  be  unjust  or 
!>:ntial." 

I'liese  enactnieuts  give  all  traffic  carried  in  competitiou  with  our  carriers  unlimited 
iV''edoiii.  •  •  ■  1 

Mt .  (Chairman,  these  statutory  provisions  of  the  Donn'nion  Govern- 
iiieiii  are  part  and  ])arcel  of  a  general  line  of  jwlitical  encroachment 
npon  Auieiican  iiif  crests,  (-mbraeing  the  outrageous  denial  of  reciprocal 
Itiivilegc  to  ,'Vnierican  fishing  vessels,  inhumanity  to  American  tisher- 
nan  autl  wrecked  American  seamen  in  Canadian  waters,  the  violations 


IW^^Kl^'.TIIlWP'  * »' 


898 


T^ELATIONS   WITH   CANADA. 


i»l 


of  treaty  HtiiMihitioiis  in  the  matter  of  iliscriiniiirttionH  in  tolls  mid  in  I 

«'iitr:in<'«>  irul  clciiraiu'e  tros,  tlu>.  oiiormons  Nul)si«li/-inj2:  of  tlm  CiiMadian  I 

I'acitic  kiiilwiiy  iind  its  I'oimoctinjf  iM'i'aii  Kt«'5iinor  linos  for  tlio  ;Ut;(iii-  I 

inonl  of  t'oninu^'cial  and  political  objecitH  ininncal  to  the  conmiotcuil  I 

and  political  inierests  of  the   United  States,  the  nnHUccessfiii  ctlbrt  I 

made  )»y  tlic  Dondiiioii    (lovcrnnient  to  refuse   to  be  bound  by  ilic  I 

terms  of   its   own  statutory  stii)ulatiou8    refiardiufjj    reciprocal  larlt!  I 

legiftilation,  and   the  unsuecesHful  ett'ort  made  in   1888  to  refust*  to  I 

allow  American  railroads  to  engafi;*^  in  the  business  of  hanliuK  Ciiua  I 

(liau  };Ood.s  from  one  point  in  Canada  to  another  point  in  Canada  with-  I 

out  payment  of  duty,  while  (Canadian  railroads  areenjjaijed  in  the  biisi  I 

Tiess — an  hundred  times  as  };reat  in  mapnitudc — of  hauling  goods  iidm  I 

points  in  the  I'liited  States  toother  ])oints  in  tlie  United  States  vitliout  I 

paynjcnt  of  duty.   .Tiu»  facts  in  regard  to  these  several  causes  of  com-  I 

plaint  are  hereinafter  presented  with  80ine  degree  of  ])articularity.  I 

THE  UNITED   STATES   AN1>   CANADIAN    TRANSIT   TRADE. 

In  order  to  arrive  at  a  (dear  understanding  of  our  Oamulian  relalioii- 
ship  nf  conunerce  and  transportation,  it  is  necessary  to  consider  very 
carefully  the  ciicumstatic<is  and  (conditions  governing  that  recipn»(;it,v 
of  tiansportation  facilities  commonly  known  as  '•  the  Unite<l  States  and 
Canadian  transit  trade." 

The  first  intimation  of  the  United  States  and  Canadian  "  transit  trade  " 
is  found  in  Article  111  of  the  treaty  of  amity,  commerce,  and  navi 
gation  conchided  Ixnvveen  (heat  iJritian  and  the  United  States  Nov. 
10,  17t)4  It  is  thi'reni  provided  that  "no  duties  shall  be  payable  on 
any  goods  whir-h  shall  merely  be  carried  over  any  of  the  portages  or 
{carrying  i)laces  on  either  side,  for  the  purjwse  of  l)eing  iuunediately  re- 
embarked  and  carried  to  some  other  place  or  places.''  But  the  "transit 
trade  "'  of  the  ]»resent  day  exists  un«ler  entirely  dilferent  circumstam-A'S 
and  conditions. 

About  the  year  1848,  the  inference  was  raised  that  if  under  our  laws 
imported  goods  held  in  a  (xovernment  store  or  bonded  warehouse — Inr 
example,  in  New  York  City — could  be  transjwrted  thence  through  tin- 
streets  of  that  city  upon  a  truck  or  cart  to  a  wharf  and  there  placced  on 
boaid  a  sliip  for  reexportation  to  a  foreign  country  without  payment 
of  duty,  it  might  also  be  lawful,  under  proper  customs  regulations,  to 
deliver  such  goods  on  board  of  a  railroad  car,  or  on  a  canal-boat,  ami 
to  transi)ort  them  in  bond  and  free  of  duty  across  the  State  of  New 
York  to  Canada.  This  was  done,  and  it  constituted  the  beginning  of 
the  transit  trade. 

About  the  same  time  the  privileg<i  was  accorded  to  the  Canadians  of 
shii)ping  their  products  through  the  United  States  to  foreign  countries 
in  bond  and  free  of  <lnty.  Both  these  privileges  were  of  vital  impor- 
tance to  the  Canadians,  and  American  shipowners,  American  sea-ports, 
and  American  transportation  lines  secured  the  advantage  arising  from 
handling  Canadian  goods.  These  two  movements  constituted  what  1 
shall  designate  as  "  the  American  side  of  the  foreign  transit  trade." 

The  granting  o(  these  privileges  of  tlie  "  transit  trade"  was  prompted 
not  only  by  the  merits  of  the  purely  economic  and  commercial  aspects 
of  the  case,  but  also  by  a  feeling  of  sympathy  toward  the  Canadians 
who  were  for  six  months  of  the  year  cut  otFfrom  maritime  commerce  in 
consefjuenceof  the  suspension  of  navigation  on  the  St.  Lawrence  River 
from  November  until  ]\lay  on  account  of  ice  and  fogs.  During  that  pe- 
riod the  provinces  of  Ontario  and  Quebec  were  practically  inland  prov- 


'"^IR 


nF,LATI0N8   WTTII   CANADA. 


81)9 


!«  JUKI  in 
'iniadiiiii 

fK'attini). 
jiiiim'rciiil 
fliil  cllott 
l«l  I'.v  I  he 
K'iil  tariir 
Jrefusi'  to 

|;m1ji  with- 
Hie  bii.'si 

)ods  Irom 
M  witliont 
fs  of  com. 

irit.y. 

I  Hilatioii. 
ii<ler  very 
i3ciprocit.v 
tiit«;s  and 

sir  trade" 
and  iiavi- 
iitea  Nov. 
a  V  able  on 
•rta^es  or 
liately  ro- 
li  "transit 
unstaiic's 

'  our  laws 
oiiso— lor 
rong-li  the 
placed  on 
j)a.vinciir 
atioMs,  to 
boat,  and 
3  of  Ken- 
inniufir  of 

idians  of 
30llnt^i'^s 
il  inipor- 
ea -ports, 
hig  from 
:l  what  I 
ade." 
ronipted 
;  aspects 
madians 
merce  in 
3e  River 
tbat  pe- 
atl  prov- 


iiic<'M,  wifli  (ho  T^nilod  States  lyinp;  hctweon  thcin  and  the  occ.ui.  Itis 
]»ossil)le,  also,  that  the  jjiantiii)^  tliis  privile^'e  of  tiie  "  transit  trad«^ " 
to  IIkmi-o  bound  Oanadian.s  (o  some  extent  IkkI  its  origin  in  the  tlioti^dit 
ot  \V(Mtinjj  ('ana«hi  to  annexation,  a  sentinienl  which  iias  floated  in  the 
minds  of  certain  American  Htatesnien  aud  theorisln  for  nioie  than  u 
criitury. 

TirK  CANADIAN  SIDK  OV  TlIK  POitBION    JKANaiT   TUADE. 

I'pon  the  completion  of  tlie  Welland  and  8t.  Liiwrence  Canals  in 
ISIS  tlie  <'anadian  (iovernnu'iit  accorded  to  citizens  of  the  United 
^States  the  i)iivile{;e  of  iinporr.injif  ^oods  from  loreign  countries  and  of 
txportint;  domestic  |)rodnee  to  foreij,'n  countties  by  the  Canadian  route 
williont  payment  of  ctiNtoms  duti«'s  in  C'lnada.  This  atlbrded  to  the 
people  (if  our  WestiTiiand  Northwestern  Stau's  the  c()inp(»titiv(i  advan- 
fii^jes  of  an  alternative  route,  and  at  the  san.e  time  it  lirouf^lit  a  largo 
amoiuil  (tfeommerce  to  the  Canadian  canab,  and  t<»  sea-fjfoing;  vessels 
at  the  port  of  Montreal.  This  constitutc'd  what  I  shall  dcsiynate  as 
"tlie  Canadian  Hide  of  the  I'oreipfii  transit  trade."  In  referrinj?  to  these 
I  wo  iiir)\('menrs  <jf<Mierally,  I  sliall  desiLinate  them  as  "the  forei;j[n 
liaiisit  trade."  iJoth  sides  of  the  loreij;n  transit  tratle  are  marked  by 
(■liara(;teristics  of  reciprocity  which  fully  jnstilied  its  existence. 

It  may  l>e  remaiked,  in  passion:,  that  the  privilep's  of  the  foreif^n 
transit  trade  are  of  vastly  more  importance  to  Canada  than  to  the 
1  iiifcd  States,  for  the  reason  that  the  jj:reat  seaports  of  the  United 
.States  froai  .Maine  to  Florida  are  open  all  the  year  round,  and  are  more 
acd'ssible  to  the  ocean  than  is  either  Montreal  nr  (\)uehec.  Even  <lur- 
1!)^;  the  season  of  navigation  the  value  of  Canadian  foreign  commerce 
across  tl»e  United  States  is  nnndi  greater  than  the  value  of  American 
tbreif^ri  commerce  across  Canada. 

THK  DOMESTIC  TKANSir  TltAUK 

There  is  aiiother  and  totally  different  branch  of  the  Unite<l  States 
i!ii(l  (!iMiadian  transit  trade  which  demands  attention.  1  reler  to  the 
isansportatio!!  of  m<'rchaiuliso  from  one  point  in  the  United  *^tates  to 
aiiolh.T  j).»int  in  tlie  United  States  across  the  tei'ritory  of  ('anatla,  and 
the  transportation  of  goods  from  one  |)oint  in  Cantuhi  to  another  point 
i!!  i.'anada  across  the  territory  of  the  United  States,  in  both  cases  v\ith- 
out  payment  of  duty.  This  sort  of  trafHic  1  shall  designate  as  "  the 
domestic  transit  trade."  This  branch  of  the  »'  United  States  and 
<'anadian  transit  tr  ide"  had  its  oiigin  in  the  geograi)iiical  circum- 
stan<!e  that  east  of  Mninesota,  where  the  jiarallei  of  forty-nine  degrees  is 
ilie  internatiftnal  boundary,  the  territory  of  Canada  forms  an  interjec- 
fion  into  that  of  the  United  Stat*(S  of  six  degrees,  iir  about  4<K)  miI<^s  of 
latitude.  Almost  the  entire  settle<l  porlionsof  the  provinces  of  Ontario 
and  t^»uebec  aie  situated  south  of  a  line  drawn  from  the  northern  bouml- 
;iry  of  Minnesota  to  the  northern  boundary  of  Maine.  On  the  other 
iiiUid  the  State  of  Maine  almost  8ei)arates  the  Province  of  Quebec  from 
the  Province  of  New  Krunswick.  The  population  of  the  provinces  of 
<.'aiiada  interested  in  the  domestic  transit  trade  by  virtue  of  these 
territorial  iriterjections  constitutes  92  per  cent,  of  the  total  population  of 
the  Dominion  of  Caiiathi. 

The  origin  of  the  "  <lomestio  transit  trade  "was  as  IbllovNis:  About 
the  1st  of  Apxil,  Ib'oi*,  the  railway  suspension  bridge  2  miles  below 
Niagara  iMilla  was  completed.    By  this  means  the  New  York  Central 


;•( 


U 


i 


900  RELATIONS   Wim    CANAPA. 

JJailroiid,  llic  (Jicat  Wislnii  llailvvny  of  (Simula,  and  tlic  Michijifivn 
CiMilial  IfailiOinl  IoiiiumI  llio  lirst  all  rail  liim  IVom  .N«'w  Voik  to  Ohj. 
cat;o,  with  tlio  »'\u\iU'  liivak  tanscd  by  tho  J)('tn)it  llivor,  wliiciji  wus 
cro.sHiMi  l>y  t'ciry.  Wt'stwnnl  the  «;«)iiiw««  of  ciiipin'  was  tukjti},'  its 
way  with  iiaix'tiious  tread.  xV  lar;;e  In-iyht  (ralVic  al  oimh'  Hpriinj;  inio 
existence,  and  tlier*'  arose  an  instant  deannnl  (or  the  pii v i lej^es of  trans- 
l)ortation  'Mn  bond"  across  Canada  wiiliout  iia.\nient  of  duty,  l<'rntik- 
iin  V'ieree  was  then  I'residont  of  the  United  States.  'Jhe  <|iH^ation  wiis" 
raised  as  to  \\helhtT  American  goods  eonhl  he  loaded  into  a  ford;,'!! 
railroad  <'ar  at  Hnspmsioii  liriilm'  an<l  (tarried  aer(»ss  the  iuterjectiiif; 
territory  of  Canada  to  Detioit  without  payment  of  duty.  The  ana!o<^'y 
fnrnislu'd  by  our  navijration  laws  which  ftirbid  the  cariiaj;e  of  puuis 
from  one  point  m  the  United  States  to  another  point  in  the  I  iiilcd 
State's  in  any  other  than  an  American  vess«'l  was  set  aside  as  inapp'i 
cable  to  the  e.\i;;encies  of  the  case.  In  the  absence  of  any  s]K'(Mtic 
statnte  npon  the  snl)ject  th*' antliorities  at  Washin^^ton  yielded  to  the 
poptdar  demand.  'J'hns  the  (lonu'stie  transit  trade  like  tlu'-  lbrei.,'u 
transit  trade  had  its  <»riyin  in  a  mere  exercMse  of  admiidstiative  discre- 
tion. 'I'hc  Canadian  (iovernmeiit  gladly  acceded  to  the  arranKemem, 
Mr  it  \v;is  of  inestimable  ;idvanta}ie  to  the  trallic  interests  of  the  then 
most  impoitant:  laihuad  oi  Canada. 

Since  the  orj^anization  of  the  d(Mnesti<!  (ransit  trade  tho  amount  ot 
tratlic  over  this  iiaitienlar  Canadian  lonte  has  yreatly  increased,  ul 
tUon^di  the  relatue  importance  of  that  ronte  has  decreased  in  conse- 
quence of  tin'  (;onstruction  of  the  s«'veral  powerlul  trunk  line^-.  sontli  of 
Lake  laic  which  (tarry  the  great  bulk  of  the  com  inerce  between  the  West 
and  the  seaboard. 

The  published  statistics  in  regard  to  the  valu<i  of  tho  United  States 
and  Canadian  transit  trade  are  not  complete.  The  following  is  all  tint 
is  available  for  the  year  c'lded  -Inne'U),  1880: 

FOnEIGX   TIlANSir  TKADE   OK  CANADA.  THKOUGII  THP:   UNITED  STATKS. 

ExpurtH  from  Canada  to  otli.-r  tbroij^n  countries  tbrougli  tho  United 
f>un*->^ ^),012,'i:.l) 

Imports  into  (Junjula  aiross  tlio  United  States  and  from  otlier  foreijj;n 
countries '..     ir>,  910, 4(10 

'I'ofcai ;iO,  922, 1)10 

yOREIGX  TRANSIT  TUADK  OF  THE   UNITED  STATKS  TIIROUail  CANADA. 

Import^inlo  tlip  ITnited  Slates  throiifrb  Caiiatl.i  §3,  ;U»4,r).ir) 

The  value  o|' exports  from  the  (Jiuted  States  through  (Janada  tootlutr 
foreign  countries  cmii  not  be  stated.  The  amount  is  comparatively 
small,  however,  in  view  of  the  fa(;t  that  the  total  vahui  of  exports  from 
Montrciil  during  the  year  I88<S  was  only  $27,^J0ll.l74.and  that  the  prin- 
cipal part  of  tliis  consisted  of  Canadian'  ])roduce. 

DOMESTIC  TIiAN8rr    IKADE   OF  CANADA   TUHOUGII  THE   UNITED   STATES. 

Total  value $(5,233,811 

l>OMKSTJC  TRANSIT  TRADE   f>F  THE   UNITED   STATES   THROUGH  CANADA. 

This  (niunot  be  stated,  as  no  attempt  has  evtir  been  made  to  collect 
the  statistics.  The  value  of  goods  thus  transported  between  diilereut 
points  in  th(  United  States  across  Canadian  territory  probably  amounts 
to$100,U0b,UUUayear. 


^•»|JggJ| 


RELATIONS    WITFf    CANADA. 


901 


Tli«'  lorejjoiiig  farts  dearly  iinlk-iitd  that  tlietlnifeil  Htatt^H  aiMK'anu- 
diiin  tr;in«if  trailo  on  the  eiiMterii  Hi«lo,  of  tlu*  contiiit'iit  wasllH'oiit- 
{.Muwili  (it  |M-<'iilJar  iiiiriirul  (*i>iitlitioiiH,  and  of  eotiiiuenMnl  oxi^eiirit'N 
comi'KHi  lt»  llio  two  roiMitiies. 


riUNiHlT  TBADK   LKCHHrATION   AND  TKKATY   STirULATKJNrt. 

Horli  luaiXibRM  of  the  tratinit  tradt^  lu*i<'iiilH'ton'  described,  and  den- 
i;,'iiiil(Ml  as  "  tlie  toreij^ii  Iraiisit  trade"  and  "thi'  domestic  transit 
iijide,"  exisU'd  IroMi  the  lime  «)f  their  inception  b.v  virtue  of  adaiinis- 
hiiiivc  discretion,  and  in  tlie  abhenci'  <»r  iiny  specillc  provision  (»f  law 
,>aiictioiim;4:  tlieiii,  nntil  Jiil.v  -8,  I8<i0,  when  the  tollowinj*  act  of  Con- 
;^iisn  was  pahsed : 

(lUviafil  Stntiil«(«,  HOC*.  JOOSuiid  notw,  Climi.  C<JXCV11I,  i^iiiiroruil  July  28,  1886] 
AN  (V('T  til  priitiH't  tliH  rrvoniir  uiid  CoroliitT  pui'ixiMCH. 

Skc.  ."i.  And  il  be  furlhir  •uattid,  Tliat  finiii  ami  at'tiT  tlio  luinHU};**  of  this  act,  all 
i^iiimIm,  wiiri's,  or  lutTcli.iiMliM'  aiiivii!)^  at  fiio  portM  of  Nfw  York,  liosfoii,  Jiiid  I'ort- 
l.iiiil,  oi'Uiiy  ollior  i>iHl  ot' tlm  IJiiiIimI  Slatt"*  wiiich  iiitiy  lio  >)>i)riall,\  dtsijiiialcd  by 
tlic  Sfi  notary  of  tlie  Treasury,  ami  iltstiiicd  lor  iilaci"^  in  tlio  uiijariiit  Drilish  jivov- 
imc.s  'ir  iiiiiviu;;  at  the.  port  of  J'oiiit,  I>alii  I,  IVxnn,  or  any  titlicr  |iorfc  of  tii«  United 
SfaliH  ivliicli  may  bf>  Hii('<;ially  (l<isit;iiatril  'vv  tlin  Ke<!n'tary  of  tlit)'J'r«'a.snry,  aiitl  iIch- 
tnifd  I'nr  |ila<'i"i  iii  tlm  lijciiiiiilic.  ol  Mi'xi.n,  may  l>o  «'nt('r»'d  at.  tlnj<'ii.sf(jiii-hoiim>,  and 
oinnrycd  in  iransif  tlir'>n;:li  tin'  trrritory  ot  the  Uniird  Statos  witlioiit  i  Im  payment 
of  (iiiiies,  under  «ncli  rule-*,  r.-nnlaiums,  and  condilionrt  for  tL»  itrotoelioii  uf  the 
ri'veniie  as  tin-  Secndary  of  tlio  TieaMory  may  pFi  .si;ril>e. 

8pi'.  *>.  And  lit'  il  fiirtlicr  inattrd,  That  imporied  floods,  ^^anis,  or  mcreliandiiP  in 
lioiid,  or  duty  paid,  and  iirodnctH  or  inamifuolnreH  of  the  liiired  States,  may,  nitli 
tiie  (oDKeiit  of  tlui  proper  authoritien  ol  tlio  proviii<;i:n  or  repuldie.  aforesaid,  bo  traim- 
porti^d  fioiu  onii  jiort  or  phu  o  in  the  I'nitud  Slates  to  aiiothi  r  jioil  or  place  then  in, 
tixrr  tii(>  territory  of  naid  provineeH  or  r<'piil)lie.  by  tyieli  routes,  and  under  mieh  rides, 
regulations  and  eonditiniis  as  flu*  Snereiary  of  tlie  TreaMiiy  may  preserilie ;  and  tlio 
S''|)iIn.  wans,  or  iiierehaiidiHe,  ho  traiiHiiorted,  shall  npoii  arrival  in  tho  I'liited  Slates 
fnini  die  proviiieos  of  ie[iiiblio  aforesaid,  bo  treated  in  rp>;ard  to  the  lialiilily  lo,  or 
exiiujilion  from  duty, or  tax,  as  if  the  traii»portation  li«d  taken  place  entirely  within 
the  limits  of  the  United  States. 

S('cti(m  5  of  tlie  statute  above  quoted  in  terms  Iejj:alizcd  the  "  foreifjii 
tiaiisit  trade,"  while  Hcctiou  (}  as  specilicall.v  legalized  tlio  "domestit; 
tiiiiisit  trade."  Let  it  be  observed  tliat  tins  act  was  pass*  d  before  the 
(Canadian  Paciiic  li;iilway  was  bej^'un,  and  that  under  tlie  piovisioiis  of 
tli«^  act  the  extension  of  the  privile/ies  of  both  blanches  of  the  transit 
trade  was  tobt;  dej)endent  uiioii  the  discretion  ol  the  ►Secretary  of  the 
Treasury.  Let  the  fact  also  be  noted  that  all  the  privile;,;cs  of  the 
"transit  traile"  secured  by  this  sttitnte  were  pronijtti'd  by  territorial 
iiilerjeclioiis,  and  by  the  suspension  of  navigation  on  the  8t.  Lawrence 
l)y  ice,  as  already  described,  and  that  these  natural  coinUtions  fully 
jiistilied  the  i^\ist,ence  of  this  rcciiu<icity  of  transportation  lacilities. 

The  next  measure  in  the  order  of  time  havin<:  relcrcnce  to  the  le^al 
estahiishmeut  of  the  "  United  States  and  Canadian  transit  trade"  is 
foi:ii(l  iu  the  twenty-ninth  article  of  the  treaty  of  \\'ashinj;tou,  which 
was  <'oncluded  May  8,  1871.     That  artiele  is  as  follows: 


i 


AUTICLE  XXIX. 

It  is  agrpcd  that,  for  the  term  of  years  uiouiioned  in  Article  XXXIII  of  this  treaty, 
Co'iils,  w.ares,  or  merchandise  arriving  at  tho  ports  of  ^ew  York,  ISoston,  and  Port- 
laud,  and  any  other  ports  in  the  United  States  wliieii  liave  bi  cu  or  may,  from  time  to 
lime,  bo  speeially  desi}j;nated  by  tho  President  of  tlie  United  States,  and  destined  for 
lior  Britannic  Majesty's  possessions  in  North  America,  inny  be  entered  at  the  proper 
I  nsfom-honse  and  conveyed  in  transit,  without  tht!  paynient  of  dnties.  throui;h  the 
territory  of  the  United  States,  under  sue  1 1  rules,  regulations,  and  couditious  lor  tho 


902 


RELATIONS    WITH    CANADA. 


protoftidii  <tf  tln'  ri'veiuK'  w  tlie  (Jovi-rmin'iit  of  llic  United  Statos  uiuy  frotii  time  to  tium 
pivscriDi.';  aiitl,  uiiflcr  likt>  nilfs,  if^nlat ions,  anil  <•  mditionss,  floods,  waros,  .ir  ini'i- 
cliiUidiso  niii>  lie  lonvoyt'd  in  tninHil.  witlniut  th«^  jinynient  of  diitifH,  from  hucIi  pos. 
sessions  throngli  tin'  tt'iiiloiy  of  tbo  Unjlrd  Htateuftn- export  fioni  t bo  said  jjortsof  the 
United  States. 

It  is  fnrtluT  iifjivcd  tlnit,  for  the  like  period,  floods,  wares,  or  nicreliandise  arriving; 
at  any  of  tlif  ports  of  Her  Ilrit:"i;iic  Alajes^fy'si  possessions  in  North  Anniiea  tnid 
destined  I'ortiie  I'nittd  States  may  lu-  entend  at  tlie  jiroper  cnsto.n-lionbii  anil  cnn 
veyed  in  transit,  williont  ;lie  paynn  nt of  dnties  t1iron,L;h  tin'  said  pussessionN,  uiiiiu 
Hneli  iides,  and  rej:cnlat ions,  and  ei-nditioiis  lot  Iho  proieetion  ot  the  revenne  as  ilu' 
governnients  of  the  saitl  possessions  may  from  lime  to  time  piescrilie;  and,  under  iijii 
rules,  regulations,  and  eoiMlitions,  ^o'.uls,  wares,  or  merchandise  may  he  eonveyed  in 
transit,  without  ])ayiiient  of  duties.  tVoni  the  United  f*tates  tlironjih  the  said  pe>;;iv. 
sioiis  to  otlior  j'l.iees  in  the  I'nited  States,  or  for  export  Irom  ports  in  the  .sjiid  1)«>sm:, 
sions. 

By  aji  uuaccountiible  blundei-,  or  tliron^h  soiin'  sort,  of  (lii)loiiiiUi(' 
legonlcmain,  ihe  piivi]e^;e  ol"  traiisportin;^  ouod.s  iVoni  <ii)e  })oitit  in  tlic 
United  States  to  another  ]>oint  in  the  Uuitetl  States  across  Canaduui 
territory  was  ptranted  to  ('anadian  railroads,  by  the  words  "tooihei 
places  iu  the  United  States:''  wl)ereas  thv;  re(;ii»roeal  privilcj^e  oftraiiv 
iwrting  goods  from  one  point  in  Canada  to  another  in  Canada  acro}*s 
tiie  United  Stales  was  not  irranted  lo  American  raiboads,  as  should 
have  been  done  in  the  first  paragraph  by  tlie  correspomling  words  "  to 
other  places  in  the  said  possessions, or,"  which  words  shonld  have  been 
inserted  alter  the  words  "without  ])aynientof  dnties,"  near  th^^  end  of 
the  ]);!raorajili.  The  wholt^  transit  trade  existed  and  still  exists  in  iim- 
tualilies  of  interest  which  lor  all  time  could  have  had  their  proper  ex- 
pression .4nd  legal  status  iu  reci])rocal  legislation,  and  i  have  nevei'.yct 
been  able  to  discover  iuiy  sensible  reason  for  incrnorati'ig  any  such  pro 
visions  as  the^e  m  the  treaty  of  Washington,  or  in  any  other  treat,v. 

And  now  allow  lue  to  recti pitu late  the  leading  facts  hereinbefore 
stated  vvbiich  seem  to  have  an  important  bearing  ujmn  issues  which  con- 
front the  country  at  the  present  time.  The  "transit  trade"  was  the 
chihl  of  administrative  discn'tiou.  Snbserjuently  it  Wiis  sanctioned  by 
the  act  of  duly  2.S,  188G,  and  by  Article  XXIX  of  the  Treaty  of  Wash- 
ington of  J'SJl.  All  this  w;is  prompted  and  justilied  by  the  parti(ui!ar 
circumstances  of  intei;jecting  territory,  by  the  disability  under  which 
the  pio\inc('S  fvf  Quebec  and  Ontario  labor  of  having  no  winter  scii- 
ports,  and  by  the  advantages  of  competition  wliich  the  St.  lyawienco 
River  route  aflbrds  to  our  Western  and  Northwestern  States  during  tin,! 
season  of  n<i\'ig<itioii.  On  the  western  sitle  of  the  continent  the  case  is 
entirely  dilfeient.  Not  one  of  the  conditions  which  justify  the  easteiu 
transit  trade  exist  ns  ajustitication  of  the  extension  of  the  privileges  of 
that  trade  to  the  Pjicific  coast.  ,. 


THE  TRANSIT  TRADE  PECULIAR  TO  THE  EASTERN  .SIDE  OP  THE  CON- 
TINENT. 

The  act  of  July  28,  ]8G«),  was  passed  nearly  three  years  before  the 
first  transcontinental  railroad  wiis  opened  for  traffic  in  this  country, 
and-twenty  years  before  the  Cantidian  J'acitic  Railway  was  completed. 
The  treaty  of  Washington  also  was  concluded  fifteen 'years  before  the 
completion  of  the  Canadian  Pacific  Railway.  It  was 'impossiblo  tht^u 
to  anticipate  the  potentialities  of  that  railway  iu  the  international  re- 
lationships of  the  two  countries.  It  is  jtbsolutely  certain,  however, 
that  no  sncl)  treaty  vrould  ever  have  been  signed  by  any  sane  American 
connnissioner,  nor  ratified  by  any  American  Congress,  if  it  had  been 
supposed  that  it  would  be  used  as  it  is  uow  being  used  to  enable  the 


RELATIONS    WITH   CANADA. 


903 


lntitotiuio 
PH,  or  nicr- 

Hlicll  po.s. 

lorf.soltli.' 

Ji'  ivrriviiij; 
JK'iica  ami 
l»  iin<l  coil. 
I'liM,  uiidd 
MK'  ;i.s  ih,. 

IlllKl.llik, 

piivcycd  II, 

ill    pi^v^rs- 

liid  IHI.S.SC,', 

[ploriiiUJc 
It  ill  Hi,. 
piinadiiiii 
to  otliir 
of  trans- 
lii  acro.ss 
8  jshoiild 
ord.s  "  to 
ave  bi'en 
K-  end  of 
s  ill  mil- 
loper  ox- 
JOVt'J'.yct 
>iu'li  i.iro- 
i'('at>. 
1 1  be  fore 
liicih  con- 
was  the 
ioned  by 
)f  Wasli- 
iirjieii!;ir 
er  wiiich 
titer  8Cii- 
'awj'eiice 
ii'iug  the 
e  case  i.s 
eastern 
ileuc^  of 


m:  coN- 


f'ore  tlie 
country, 
ipleted. 
fore  the 
le  then 
Dual  re- 
)wever, 
ncricai) 
id  been 
ble  the 


Canadian  and  British  (Jovernments  to  divert  American  commerce  from 
American  ships,  American  sea-ports,  and  American  tiansitortatiou 
linos,  ;in(l  to  exploit  British  imperial  confederation  on  tiiis  coniiiicnt. 
jjiitwiti'  tlie  comph'tion  of  the  l\icilic  Railway  to  the  Pacifu'  (Jceau  in 
tlic  nioutli  of  May,  ISSiJ,  the  then  Secretary  of  the  Treasury,  ilon.  Daii- 
icl  Manning,  ^'ranted  to  tlie  Canadian  l*aeii1(!  Kail\vay  (.'om])any  the 
))riviIo;;os  of  the  transit  trade,  so  that  it  was  enabled  at  once  to  enter 
into  competition  with  American  lines  for  the  transcontinental  tratlic 
of  the  lIiiit(Hl  Htates,  and  also,  by  the  sheer  force  of  British  aixl  Cana- 
dian govern  me:  .1  subsidy,  to  compete  wiih  Aineri<'an  steamer  tines, 
American  sea- ports,  and  American  railroads  for  our  Asiatic  commerce. 

it  will  be  obserxed  that  under  the  provisions  of  the  act  of  July  2S, 
bsdO,  both  tbeforeifjn  and  domestic  transit  trade  were  to  be  conlined  to 
such  routes  as  the  Secretary  of  the  Treasury  might  prescribe.  lam 
awiMc  of  the  fact  that,  under  a  familiar  rule  oicoustruction,  a  statute  of 
ajjcnera!  nature,  although  in  its  Ibrm  i>erm!ssive,  is  iieverMielcss  man- 
dittory  upon  the  otllcers  of  thetJovernment  char^^ed  with  itsadministra- 
fioii,  and  that  se(;tioii  (>  of  the  act  of  July  28,  iSi'S,  may  be  regar<le(l  in 
tliis  hglit.  There  is,  however,  a  question  as  to  whether  the  Secietary 
did  or  did  not  err  in  allowing  the  transit  trade  on  the  I'lndfic  coast  to 
bo  (conducted  in  j^art  by  vessel  and  in  part  by  rail, embracing  the  trans- 
f'"' '^f  cargo  on  foreign  soil.  But  1  submit  to  the  conupitte<'  that  tlio 
historic  facts  wiiich  alone  Justitied  the  [)assage  of  the  act  of  rJnlyl'S, 
KSOi),  and  the  <jue:;4ions  of  public  policy  which  now  confront  the  country 
regarding  the  eucroaehmein;  of  the  Dominion  Government  upon  the 
navigation,  transportation,  and  commercial  interests  of  Die  Cnite<l 
States  clearly  demand  that  Congi(vss  shall  by  si)ecitic  provisions  of  law 
so  restrain  the  j)rivileges  of  the  transit  trade  as  to  prevent  any  im- 
proner  or  injuiious  diversion  either  of  our  internal  or  foreign  com- 
m(ir(;e.  ' 

Tlie  scheme  of  British  imperial  supremacy  over  the  comiuerc<'  of  the 
western  side  of  this  continent  must  be  checked,  and  the  .sni)r('niacy  of 
the  United  States  over  that  commerce  must  be  asserted  and  maintained. 

RAJllCAL  l)TFrEin<:NCES  WIirCIT  EXIST  BETWEEN  THE  CONDITIONS 
U\1)EB  WlilCIl  THE  TRANSIT  TRADE  EXISTS  ON  THE  EASTERN 
AND  ON  THE    WESTERN  SIDE   OF  THE   OONTINENT. 

In  order  to  make  pcifectly  clear  to  your  committee  and  even  at  tlie 
risk  of  repetition  I  dcsiie  to  invite  \onr  attenrion  to  the  following  staie- 
Tin'iits,  showing  specifically  the  radical  dilfcrences  wliich  exist  between 
tlic.  conditions  oruler  which  the  transit  trade  exists  on  the  eastern  and 
on  the  western  sides  of  the  continent: 

First.  The  eastern  transit  trade  is  across  interiecjting  Canadian  terri- 
tory. In  i)ar'.  it  is  carrie<l  on  over  an  Anieiicaii  iiiie.  the  Canada  iiouth- 
eni  Kailway,ithe  ownershij)  of  v  hich  is  closely  allied  to  that  of  the  New 
York  Central  and  Thnisou  River  Railroad.  There  is  :vv  sucli  inteijcct- 
ing  territory  on  the  western  side  of  the  coiitiiuMit,  and  no  such  Ameri- 
can line  there,  nor  can  any  such  American  line  be  constructed  under 
existing  Canadian  laws. 

Second.  The  transit  trade  across  the  interject  ing  Canadian  territory  at 
the  east,  whileenabling  some  of  the  principal  railroads  ofCanada  to  par- 
ti(!ipate  in  our  domestic  trade,  affords  the  reciprocal  advantage  to  Amer- 
ican siii}»pers  of  short  and  «lirect  lines  betw'cen  onr  Morthwesteni  kStates 
and  our  iiew  England  States j  but  no  such  advantage  of  a  shorter  line 


;  ',1 


^^^ 


mimmmim 


904 


RELATIONS    WITH    CANADA. 


l)etv\('eii  iliffeiTnt  jtiirts  of  tins  coimlry  is  afibrded  by  any  railroad  across 
(jaiiadiaii  soil  on  the  w(\steni  side  of  the  coiitiueiit. 

Thivd.  The  most  [»opidousaiid  most  wealthy  poif  ion  of  the  iJoniiiiidu 
of  Canada  is  for  six  months  of  the  year  dependent  almost  entirely  uj.ou 
transit  across  tlie  territory  (»f  the  U'nited  States  for  free  eomnirrcial  iii. 
tereourse  with  foreign  countries,  liutnosucli  disability  affects  Jiritish 
Columbia.  In  common  with  all  the  raeitic  coast  i)oits,  as  far  north  a.s 
Sitka,  Alaska,  the  ports  of  British  Columbia  are  open  all  the  yt'ar. 

Fourth.  The  eastern  transit  trade  lines  tend  to  bring  tiade  to  Anicii- 
can  sea-i>orts,  while  the  Canadian  Pacilic  Railway,  with  its  J^)riti,sli 
steamerlineadjuncts,  operates  very  strongly  to  turn  American  comiiu kh; 
from  American  sea-ports,  a  fact  which  has  created  great  alarm  on  our 
.Pacific  coast,  and  has  led  the  convention  of  commercial  and  in<lustiiiil 
organizations  of  that  section  to  utter  an  earnest  apj)e;d  to  Congress 
for])rotection  against  the  aggressions  of  the  Canadian  and  Jiritish  (Jov- 
ernments. 

I'lrth.  The  St.  Lawrence  route  affords  to  the  jieople  of  our  Western  and 
Koithwostern  States  the  coini)etitive  advantages  of  an  alternative  joute 
in  thiir  commerce  with  foreign  countries  V)eyond  Canada;  but  the  j>hysi- 
cal  an<l  })olitical  geography  of  the  two  couutiies  present  no  such  advan- 
tage to  thepeoi)le  of  this  country  on  the  western  side  of  the  contineiil. 
Sixth.  The  raihoads  which  were  allowed  to  engage  in  the  transit 
trade  under  th(>  inivileges  of  the  act  of  .Inly  '28,  l.SiUi,  and  of  Article 
XXIX  of  the  Treaty  ol  Washington,  were  all  constructed  as  conimeicial 
highways,  on  commercial  principles  and  to  subserve  merely  commercial 
purposes,  but,  as  before  slmwn.  the  Canadian  Pacili(5  Jtailway  was  con- 
structed by  the  tiuancial  aids  which  il  received  from  theDondnion  (Jov- 
ernment  and  for  the  purpose  of  subserving  pobtical  objects  distasteful  to 
the  United  States  and  iniiniial  to  the  interests  of  the  peo])le  of  this  (;oMn- 
try.  All  this  is  eviilcnced  i)y  the  contribution  of  $2Jo,<»()0,U00  in  gifts 
and  other  siibventioiis  byi  the  Doudnion  Government  to  the  Canadian 
Pacific  Pailway,  by  an  ext'niptiou  of  tlie  property  of  that  company  from 
taxatioji,  a:nonnting  to  -■j(iuo,UiM>  a  year;  by  the  remission  (»f  duties  on 
rails  and  other  materials,  amounting  to  $7,()(>b,(»(H»,  upon  the  basis  of 
the  rates  of  duty  charged  in  the  I  nited  States;  i)y  piotectitui  atlordcd 
to  the  Canadian  Taititic  liailway  against  the  constructi(ui  of  comjieting 
lines,  and  by  the  subsidy  b»  the  jjortion  of  that  road  across  the  State  of 
Maine,  amounting  to  -^ISOjOOl)  a  year. 

Seveulii.  The  Canadian  Pacific  Railway  connects  with  a  P>ritisli 
steamer  line  to  Asia  so  heavily  subsidized  i)y  the  Canadian  and  l!ritish 
Governments  as  to  threaten  the  nun  of  the  American  steamer  liiu's  ply- 
ing between  San  Francisco  and  ports  in  Asia,  and  to  divert  our  Asiatic 
commerce  from  Annnican  sea-ports  ou  the  Pacilic  to  the  Canadian  IV 
citic  Railway  terminus  at  Van<;ouver.  The  Canadian  and  British  (iov- 
eruments,  with  the  idea  of  the  Im[)eiial  Confederation  of  ll.e  Riitish 
Empire  prominently  invuiw,  are  now  i>liinuing  for  the  establishmeid;of 
it  heavily  subsidized  British  steamer  line  to  Australia  and  New  Zealand. 
This  will  undoubtedly  break  down  the  Ameiican  line  of  steamers  ]»ly- 
ing  I>etween  San  Francisco  and  those  islands  unless  Congress  shall 
take  vigorous  nueasures  for  preventing  such  a  disaster.  The  Canadian 
and  British  (Joveinments  are  also  i)laniiing  lor  the  establishment  of  a 
heavily  subsidized  transatlantic  steamer  line  from  St.  John  or  Hali- 
fax to  Liverpool.  This  line  will  teml  to  divert  comnnu'ce  from  New 
York,  Boston,  and  Poitlaud,  Me.  Jiut  no  su(;h  schemes  for  divcuting 
commerce  from  American  shifis,  from  American  sea-ports,  and  from 
American  transportation  lines  characterized  the  railroads  which  were  au- 


RELATIONS   WITH   CANADA. 


905 


th()rize<l  to  enjjaj?ein  the  transit  trade  by  the  act  of  July  28,  1S6<J,  or  by 
tlio  treaty  of  VVaHhinjjfton  of  1871 ;  and,  as  before  remarked,  chat  treaty 
would  never  liave  been  sijifued  by  any  wane  American  commissioner  if 
it  had  bten  characterized  l)y  any  such  feature  of  hostility  to  American 
iuterosts. 

Eighth.  The  Canadian  Pacific  Kailway  is  closely  identified  with  niil- 
itiiry  olijects,  which  were  urged  with  etfect  both  in  Canada  and  in  Great 
Britain  as  one  of  the  most  potent  considerations  in  favor  of  its  con- 
stiuclioii.  This  teature  of  the  enterprise  is  clearly  imJicated  by  tlie 
I'orinidable  fortress  and  naval  station  at  Esquimault,  on  the  island  of 
Vancouver.  Although  the  Pacific  coast  population  of  the  Uniteil 
Stutco  is  LV-*(»S,(1()0,  as  against  ir>(>,000  in  Pritish  Columbia,  and  the 
wealrli  ami  commerce  of  that  section  of  the  United  States  are  cor- 
res])oudiiigly  greater  than  those  of  Canada,  no  such  u)ilitary  prepara- 
tion lias  been  made  by  our  national  Government  on  or  near  Paget  Sound. 
As  bctore  stated,  the  first  freiglit  train  which  passed  over  the  Canadian 
Pacilic  upon  its  comi)letion  was  loadc<l  with  nmterial  of  war.  l^o  such 
niilitaiy  <lis[»lay  as  this  was  associaved  with  the  transit  trade  authorized 
by  tlic  act  t>f  July  28,  18(5(i.  and  by  the  treaty  of  Washington. 

J'joni  the  foregoing  statements  it  apitears  that  the  United  States  and 
Canadian  transit  trade  had  its  origin  in  mutual  commercial  needs;  that 
it  is  based  u])on  the  pliysical  conformation  of  the  two  countries;  that  it 
eiiibiaees  within  itself,  ajul  ajiart  from  any  other  consideration,  the  ele- 
iiieiits  of  a 'true  rccijirocity,  ami  that  it  has  no  necessary  connection 
whatever  with  the  tariff  (juestion,  or  with  any  other  question  atte(!tiiig 
rlie  relationshi])s  existing  bet  ween  the  two  countries.  It  is  simply  in 
the  nature  of  the  "  right  of  way''  granted  by  each  country  across  its 
territory  to  the  citizens  of  the  other. 


k 


STKTTGGLE  MADE  IJY  Till;  CA^'AI)rAN  PAOIFFO  FOll  THE  CONTIU)!.  OF 
AX  nil'OIJJ'ANT  I'MfT  OV  THE  IxNTEllNAL  AND  FOUEIGN  COMMEHCE 
OF  Tlll^    UiNLTED   STATES. 

The  (Canadian  I'acitic  IJuilway  wasojien  for  tratlie  in  the  month  of  .Tune, 
1S>S(».  Witli  a  phemtmeiial  and,i(;ity  tlie  l)(>iiiiiiion  (b)V(  rinnent  and  tlie 
Canadian  Pacific  iiaih\;iy  numagement  assumed  that  the  privileges  of 
both  The  internal  and  the  foreign  transit  trade  t)f  the  United  States 
a]»i)lied  to  transcontinental  tralUc,  notw  ithstan<ling  the  historieal  fact 
'hat  the  entire  transit  trade  was  originally  established  under  the  pecu- 
liar conilitions  of  mteijecting  teriitory  on  tfie  eas'tern  side  of  the  c(»nti- 
iient,  already  described,  and  by  virtue  of  the  fact  that  the  Canaduin 
pi  ovineesof  ( )ntari('  ind  Quebec  are  shut  off  from  foreign  commerce  by  ice 
and  logs  during  six  nu)uths  of  the  year.  The  actof  J  uly  28, 180(>,  made  t  he 
extension  of  the  "transit  trade"  subject  to  the  discretion  lodged  with  the 
iSteretary  of  the  Treasury  toueliing  the  proti'ction  of  the  revcnues^froni 
customs,  and  the  twenty-ninth  article  of  the  treaty  of  Washington  in 
terms  provided  lor  the  transit  tra<le  over  the  particular  routes  on  the 
east  side  of  the  continent  described  in  that  article,  ami  to  such  other 
routes  as  might  be  "  specially  designated  by  the  l*resident  of  the  United 
States."  1  think  that  from  the  stand-point  of  national  interest  and 
honor  it  is  a  cans(»  for  regret  that  the  late  administration  sliould  have 
granted  the  privileges  of  the  transit  trade  to  the  (Canadian  Pacific  IJail- 
way,  ami  thus  have  ai<led  the  Government  of  Canada  in  carrying  out  a 
line  of  political  and  military  ])oli('y  tin-  objects  of  whiiih  are  inimical  to 
the  commercial,  mivigatioti.  and  transportation  interests  of  this  country, 
and  in  a  political  sense  olfousive  to  the  United  States. 


'ISK1»U-.'BW1""'""'<!'>|  I'miww^iuw 


—-MB 


906 


RKLATIONS    WITH    CANADA. 


i 

it'? 


tbt'. 


t 


,5* 


/ 


As  oiir  navigation  l.iws  tbrbitl  that  any  foroign  vosael  sliall  engjafrcin 
our  doinesiic  coninu'ice,  it  mils  neoe.s.saiy  that  an  Aiiu'rican  line  of 
sti'iiiiiers  sLiOuUl  tonn  tlic  connection  with  the  Canadian  I'acitic  Kail- 
way,  whereby  that  agency  of  the  Dominion  Government  miglit  be  aliki 
tocom})ete  with  the  transcontinental  and  eastern  trunk  lines  of  the, 
United  States  for  the  traflic  of  California,  Ongon,  an<l  Washington 
with  the  ea«t  side  of  the  continent.  Under  the  arrangement  whicb  wris 
made  foi'  cairying  that  ob,ie«;t  into  cH'ect,  the  Canadian  Tacitic  Railway 
at  once  began  a  bulldoznig  jiolicy  in  regard  to  rates,  witli  the  object 
plainly  in  view  of  wresting  from  the  Ameiican  lines  a  hirge  share  of 
the  tlirongh  traffic.  Its  management  demanded  a  larger  share  than 
the  Anwrican  lines  could  atibi'd  to  grant  without  inii)eriling  their  own 
interests  besides,  it  was  seeti  tlnit  a  very  material  reduction  of  thmiigh 
rates,  in  order  to  ])revent  traffic  diversion,  would  compnnnise  the  Amer- 
ican  lines  with  respect  to  aii  e(piital)le  adjustment  ol  through  and  local 
rates,  and  giMierally  with  renpect  tocom])eting  and  non-competing  i-ates. 
This,  however,  would  have  led  to  divscontent  all  along  their  lines,  and 
the  blame  would  of  course  have  fallen  immediately  upon  the  managers 
of  tlu^  American  lines,  who  were  prevented  from  adopting  eflective  de- 
fensive measures  by  the  anti-i>ooling  provision  and  the  "  long  and  short 
haul  rule"  of  the  iuterstate  commerce  act.  The  general  manager  of 
one  of  the  American  lines  remarked  that  with  iheni  it  was  a  questiou 
of  "  no  traffic  or  no  rates." 

TheTieasnry  Department  had  given  the  whole  case  away  in  thebegiii- 
lung,  ami  about  the  same  time  tlie  interstate  commerce  act  took  effci •^ 
Everything  seemed  to  favor  Canadian  aggression.  For  nn)nths  the 
mamigers  of  the  American  transcontinental  railroads  were  in  a  demor- 
alized state,  while  Mr.  Collingwood  ►Sclireii)er,  chief  engine(»r  and  ma- 
ager  of  the  goveriunent  railways  of  Canada,  exultingly  rej)orted  to  his 
governnusnt,  under  date  of  Decend)er  L*(i,  ISST.  tiiat  "already  notes  of 
alavm  have  been  sounded  by  the  American  press  at  the  manner  ia 
which  the  Canadian  Pacific  Railway  is  cuiting  into  the  business  oi" 
the  transcontinental  roads  ol'  the  United  States."  Canadian  subvention 
and  i)rivilege  anil  the  restrictive  legislation  of  the  Unitiul  States  wen* 
doing  their  work. 

The  Canadian  Pacilic  Railroad,  constructed  nnunly  by  the  gifts  and 
aids  of  various  sorts  extended  l>y  the  Canadian  (rovernment.  and  backed 
uj)  by  that  Government  in  evt^'y  act  of  aggression  upon  Am^-rican  in- 
terests, was  lighting  a  set  of  American  lines  constructed  mainly  or  en- 
tirely by  i)rivare  capital  with  large  linancial  obligations,  and  confronted 
by  a  jealous  and  somewhat  unfriendly  public  sentiment  in  this  (country 
toward  railroads  generally.  Tlie  whole  situation  seemed  to  ilusirate  the 
irony  of  fate.  Altor  a  while  the  Interstate  Commerce  Comniission  ruled 
that  l;h«',  competition  of  the  Canadian  I'acitlc  Railroad  is  a  caus(^  for  dt- 
l)arture  from  the  "  long  and  short  haul  rule."  This  atforded  relief  to  the 
transcontinental  railroads,  bn.t  greater  relief  t6  the  producing'  in<lus- 
tries  of  California,  which  depend  lor  quick  nu»rkets  upon  that  portion  of 
the  United  States  situated  east  of  the  Missouri  River.  To  whatexteni 
the  "  long  and  short  haul  rule"  may  be  departed  from  the  Commission 
has  cautiously  refrainetl  from  asserting,  and  the  country  is  still  at  sea 
upon  the  vitally  important  question  as  to  the  inlluencc  which  shall  be 
exerted  in  the  deterndnation  of  relative  rates  by  rival  connnenaal  forces, 
by  !n«nintain  ranges  ami  arid  wastes,  and  by  the  competition  of  water 
lines  and  the  power  exerted  by  the  Dominion  Government  through  its 
alter  <'(fi>,  the  Canadian  Pacilic  Jiailway  Company.  This  constitutes  to- 
day the  great  emergent  ipiestion  of  the  American  railroad  problem. 


KELATIONS   WITH   CANADA. 


907 


For  TTiiiTiy  months  a  war  of  rates  continued  between  the  Canadian 
Pacitic  and  tiie  American  line.^,  and  tlie  situation  to  day  is  in  the  nature 
of  an  armistice.  Piactically  the  railroads  have  been  left  to  fight  their 
own  battles.  The  plan  adopted  for  keeping;  the  peace  is  that  of  dif- 
ferential rates.  By  this  arranjjement  tin;  Canadian  Pa<Mfic  is  allowed 
to  ( liarjjc  lower  rates  in  order  to  secure  a  share  of  the  through  traffic 
of  this  country — a  virtual  concession  to  the  financial  p(»wer  of  the 
Dominion  (loverninent  behind  the  Canadian  Pacific.     This  's  indicated 

Jh 
trallir  from  San  I'lancasco  to  iJliicajro  l»y  <lirect  American  rout<'s  and 


b\  the  rates  which  prevailed  in  the  month  of  January,  1890,  on  througl 
tiaDir  from  8an  Francasco  to  Chicago  by  <lirect  American  rout<'s  an(. 
)v  the  Canadian  Pacific;  route  by  steamer  to  Vancouver,  and  theuce  by 
he  Canadian  Pacitic  Kailwaj'  and  its  eastern  connections. 


Through  rateg  from  San  Francisco  fo  CIncago. 


Merchandiao. 


I  Diiect 

1  Aiiiorl- 

can 

route. 


Class:  ' 

F;rrtt  I  $'J.90 

Sicdiiil '  3.40 

Tliiiil i  2.70 

lt,ii!th ;  2.10 

Fifth 1.85 


Cana- 

fiiiin 

Differ-  i 

I'acirtc 

eiitial. 

rout*. 

$3,  72i 

$0.17i    ' 

:i.  254 

.Mi    , 

2.  r>H 

.12     1 

2.00 

.10 

1.75- 

.10     j 

Mcrcbantlidi), 


Claoa: 
A. 
J!. 
(J  . 
I). 
E. 


Direct 

Cana- 

Aiiieri- 

flifin 

can 

Pacitic 

route. 

route. 

$1.82 

$1.90 

1.70 

1.02  ! 

1.35 

1.2« 

1.20 

1. 1.5 

1.10 

1.05 

Differ, 
ential. 


$0  08 
.08 
.07 
.05 
.05 


The  discrimination  in  passenger  tratlic  is  illustrated  by  the  following 
statement  quoted  from  printed  schedule  now  (Dec.  26,  1889)  in  force: 

Bates  from  St.  Paul,  Minn.,  to  Portland,  Oregon, 


Class. 

Via 

Xi.rtlieiii 

I'acitic. 

Via 

Caiindiau 

I'acilio. 

I.iniitpil : 

Fii Ht  class 

$60 
35 

$50 
30 

Setoud  c1h8» 

The  agreement  as  to  rates  just  described  applies  oidy  to  transcon- 
tineiitial  traffic,  the  eastern  out {)fKsrs  of  which  are  St.  Paul,  Milwaukee, 
(Chicago,  St.  Louis,  and  New  Orleans.  Through  rates  are  quoted  be- 
t\V(\en  Atlantic  and  Pacific  coast  citit'S,  l)ut  there  is  no  supervision  over 
such  traffic  such  as  that  exercised  by  the  Transcontinental  Association 
over  tratHc  west  of  Chicago  and  St.  Louis. 

The  Canadian  Pacific,  in  its  tigiit  with  the  American  transcontinental 
lines,  is  now  securing  a  large  share  of  the  transcontinental  trallic,  i.  c, 
traffic  between  the  Pacific  coast,  and  a  line  of  whicdi  the  principal  east- 
ern points  are  St.  Paul,  Milwaidiee,  Chicago,  St.  Louis,  and  New  Or- 
leans. 1  am  informed  that  in  the  year  1889  their  share  was  about  39 
j)er  cent. 

Besides  this  there  is  a  traffic  ow.t  which  neither  the  Transcontinental 
Railway  Association  nor  any  other  American  railway  organization  ap- 
peals to  (jxercise  any  vsort  of  control,  and  winch  is  not  included  in  the 
percentage  just  stated.  I  refer  to  the  direct  traffic  between  points  in 
the  Atlantic  sea-board  States  and  China  and  .lapan. 

The  following  tabh'.s  exhibit,  respectively,  the  kinds  and  weights  of 
commodities  exported  fronr  the  Atlantic  seaboard  States  to  China  and 


■i". 


|i| 


I#, 


■mLi 


908 


RELATIONS    WITH    CANADA. 


Japan,  via  British  Coliiinbiii,  by  the  Caiiadiim  I'acitic  Railway,  and  its 
heavily  subsidized  JJritiHh  st«  -nier  line  across  the  I'aeilie  Oecun.  also 
the  kinds  and  weights  of  couiuiodiries  inijiorted  into  the  United  Slates 
from  Cliina  and  Japan,  thronyh  British  America,  over  the  Canadian 
Pacific  Railway. 


t 


i? 


Kinds  and  xceinhts  of  commodUien,  the  jiroduciion  of  the  Cnited  Stalex,  fxpor led  from  ihe 
I'nitvd  StalcH  t!iroii<ih  lirUinh  Cnlnmhia,  viathv  Canadiuii  I'adfw  Uuihiaij,  to  CiiiiKtand 
Japan,  during  the  year  ending  June  :J0,  Ij<H8. 

[From  official  reports  liy  the  TJuitod  States  inspector  of  euHtomn  ut  Vaiicouvor,  British  Colambla.  | 


Articles. 


Hooks 

Bootsaud  ■(lioos,  India  rubber 

Clocl(H  ;iud  wiucheb 

CottOUM 

G.vp.suin 

Hoofs,  III li  IIS.  aiiilboiios 

LnbriraiitM 

Aliicliiiu'ry 

ltor('b;iii(Jiso 

Organs 


Weight. 


Pnuiiiln. 

5, 973 

UIO 

91>7 

4,  (560, 1(>8 

•27,41<l 

7'J,  iJl'ii 

7,  MMi 

(178,  047 

ai,  lie 

•.11, 19a 

Articlos, 


Weiijlit. 


Poiinih. 

I'nsunal  elfcctH 15,570 

I'Iimiba;:o :i!K) 

Itmtan  core I  :m 

rale i  2,  (inO 

'I'oliarcoaiul  elsiarettes |  1,  725 

I  iMui-i'iiis I  4i), (il'O 

'I'viuvwritiirs lio 

Wire j',i,(\Wi 

To l.i  1 I  5,  fll'o,  liib 


Kinds  and  ircinhfn  of  comwodiths,  Ihn  prodni'lioti  of  the  United  H^^tafcs,  exported  from  llm 
United  Stiiten  through  liritixh  ('olnmhia,  rin  (lie  (Junadian  I'avifio  Railway,  to  China 
and  Jiiixtn.  duriiifi  the  year  ending  ,/inie  'M),  t-'ri;!. 

[From  ofiicial  report  b.v  tbo  Uiiitid  States  inspector  of  customs  at  Vancouver,  British  Columbia.] 


Articles. 


Wf'igbt. 


Articlos. 


Air  puns 

A  pi'l.'s 

Biiolvs.stiitionory,  charts,  ami  iiiintcd 

matti'r  

Boots,  India  rublier 

Carbons 

(;«rtriili;«  s,  niotallic 

Ciisesof  wood 

Cclluioid 

Clay  iiipi" 

Collar-i.  linen 

(,'oi>ver  wire 

Ciilii>n« 

Cream  of  tiiiiar 

Crcsiii 

l)r\  -ofids,  not  spcciflert 

!)ni '.'.-..  not  '(leeitiwl 

El>Miiie,  lixtiires 

Fill  works 

Gas  fixtures 

Giusenir   

(rlassw-.re 

He»\-lii;lii.s  for  locomotives 

"  !»^'     ■   '.'.  t>rtilixera 


11  

U  .c    

i..  .    (i;   :'.ve  .springs 

not  Rpecitiert 

V     '  .      -TRsses , 

Sonli  ■>       

'i'vi'ewritera 

Wire  roj»e 


FcundK.     r 

40  i' 
310  i; 

40.  ,'■.88  ;; 

4,007  ■' 
4,140  ji 
3,  Hi-.'  !i 

3U0  i; 

1.25:;  I 

2,801   i' 

19,070    ' 

11,  750,  .'ill*  i 
8i;i  I! 

.'•.04 
11,. lot  1 

8,080 ;: 

106,451  ; 

1,400 

2,119 

39,033   ! 

100   ; 

4.'')0  ■! 

182,780   ! 

9,762    I 

301 

13,  111 

470 

328,  038 

1,819 

3,603 

200 

20,  040 


Lamps 

I-i'iitlier  beltni;' 

Mica 

.Milk,  I oiidensed 

Meichjinilisi'  not  specifleil 

Mi.^siunary  <;ooils 

-Musiciil  iii.struments : 

Ortans 

I'iaiio-i 

Oils,  liiliiicalini; 

Oils  ,!iid  (laiul.s 

P.iper 

J'ei.eilH  of  lead 

Personal  etle<  ts 

lMiiPiii>'_'ra|)lis 

I'liuli.i;! ajihlt  goods 

rietiiies 

Suljiliiir 

Silk,  raw .. 

Skates,  roller 

T.a 


Weight. 


'I'eleiirapbic  wire  ... 

robaeeo  

(;i'.;arctto«    

Till  ware 

Varnish 

Wood  maiiufactures 

Boat 

One  show-ca.se 
Wax-candle  stock 


Pounds. 

410 

1,71,1 

«5 

l,8!!fi 

5,  4li0 

70, 41)0 

2,7vo 

1,  (l.iO. 

18,  Olfi 

l.lftO 

mo 

8«1 

12.  Oil.'; 

a,  100 

7H 

no 

274 

2,  (>n:i 

37.  700 

m 

3, 4:;o 

7a,! 

3,  70'J 

1,531 

1,7J4 

2,  340 

7,786 

12,831,091 

*■  No  weight  given. 


DELATIONS   WTTTT    CANADA. 


909 


I'ointds. 

1.'',  r.?) 

1,  ."US 

U't,  (ilMt 

00 

5;!,  (i;-.;) 

1,896 

S,  408 
71).  KiU 

2,720 

1,  050. 

laolR 

1.  !,')« 
100 
(■Ml 

12.  <■:!.■; 

1!,  100 

7il 

no 

274 

2,  (i02 
:!7.  700 

m 

3, 4'JO 
■  75.! 
8,  792 
Jl,531 
1,754 

2,340 

(') 
7,786 


Eiiidn  niid  nriiihln  of  vommoditicH  imported  into  the  Uniled  States  from  China  and  Japan 
tliidicjh  Urilixit  Caliiiiihia  ria  the  (Janadinii  Pacific  llaihvaii  durintj  the  calendar  yiar 
If'^r^'diiil  the  riercii  iihuilhs  eiidiiig  Xonmher  ;'i(l,  l.'^r-'.*. 

[i'rom  oliii'iiil  n  ports  ol'  the  V.  ,S.  Iiisjioftor  of  cimtoins  at  Vanooiivor,  Rriiish  (^ulniubia,] 


Ci'iiiMiodiltoH. 


1888. 


1 


Poundg. 

Tea 14,  087,027 

liirfi 21f!,;)8r) 


]i:i.\  sillc 

Cmiiis 

llitliiij; 

Straw  liriiiil 

K!ii\  lll'i'f 

l':i|"''  "Ml-.! , 

Silk   Uil,-!C 

Fireworks 

Silk  ijinuls 

J;i|itin  wai'c 

IVrHoiiul  etlVuts 


500,  Wfl 
MO,  ;!74 
4,  OaO 


180 


Klovon     I 

lIlOlltllHof  I 

1889.       I 


1 'minds,  I 

8,  t)i'0,550  i 

3,401,382 

700,701  ! 

;)01,277  , 

:iOi),  012  I 

100,  t>:,h  ! 

8;t,  370 

37,  (i]0  \ 
27, 1120 

10,777  1 

10,.S!)1  ; 

7,  387  I 

7, 350  j 


ConiiiiiidilioH. 


18C8. 


Poundg. 


■I- 


BnTiiboo 

Silk  llOMS 

I'orcclHiii 

Aiiiiiiiil  skills 

Alt  jiooils 

f  iroooiies 

Lily  liulbs 

Ivories 

Men  li  iiidiso  (liot  otlier- 
•Nv  iso  (ieHcnboil ) I    1,00,"),  370 


16,400 


107,0)0 

19.  250 

180 


j      Kb'von 
mouths  of 
188y. 


Poundn. 

ti,  420 

3,  91>2 

748 

tiM) 

160 


644,411 


Tot«l I  10,877,427 


14, 407,  !i33 


The  (|ii;iiitit.v  of  cotton  jjroods  sliii)i)P(l  from  the  United  States  to  China 
mill  ,);i|)an  by  the  Ciinailiiin  Pacitie  ronle  ai)iiears  to  have  constituted 
4.S  )iei  cent,  of  our  total  exports  of  sucli  goods  to  those  countries  dur- 
ing tlie  year  ended  June  30,  ISSO. 

The  tjuaiitity  ol"  tea  iniportj'd  by  this  route  during  the  calendar  year 
1888  C(»n.stituted  nearly  HO  [»er  t;ent.  of  the  total  inii)ortsof  tea  into  the 
United  States  froni  Ohijni  and  Japan  during  the  tiscal  year  ended  June 
30,  1889. 

The  ])recise  question  wliich  confronts  Congress  and  the  country  is: 
Shall  a  ioreign  railroad  built  by  a  foreign  government  and  a  subsidized 
Kiitifsh  steamer  line,  established  in  connection  with  that  railroad  for 
commercial  and  political  puri)oses  iniuiical  to  the  United  States,  be  per- 
mitted to  divert  Amei  i(!an  (toMimerce  from  American  vessels,  Americar 
i<('a  ports,  and  Anieiican  Iransportation  lines,  and  if  not,  what  measures 
t>Iiall  be  adopted  for  the  protection  of  such  American  interests'? 

I.KGALirv    OF   THH  AKK.ANftKMENTS   UNDER   WHTOn   TUV.   PRIVILEGES 
OF  THE   "TKAIs'SIT  TKAJ)E"  UAVE  UEEN  EXTENDED  TO  TUE  PACIFIC 

OCEAN. 

The  legality  of  the  arrangement  whereby  the  privileges  of  the 
domestic  transit  trade  have  been  secured  by  the  Canadian  Pacific 
Iv'aihva.v  (Company  is  subject  to  serious  doubt.  Such  privileges  have 
bct'ii  s(>cured  by  forniii;g  a  coniu'ction  with  an  American  steamer  line 
lil.viiig  between  Vancouver  and  ports  in  the  United  States  as  far  south 
as  Sail  Diego,  Cal.  Tlje  aln-ogation  of  Article  XXX  of  the  Treaty 
of  Washington  denied  this  pri\il(.'ge  to  foreign  vessels.  The  connec- 
tion made  by  the  Canadian  Pacific  with  an  American  steamer  line  is, 
however,  (puistionable  as  to  its  legality.  Our  navigation  laws  confine 
the  domestic  carrying  trade  of  the  United  States  exclusively  to  Ameri- 
cnii  vessels.  Obviously  an  American  vessel  could  not  take  a  cargo  of 
ditmestic  goods  from  San  Fi-aiiciscio  to  V^dparaiso,  Chili,  and  there  ship 
tiicm  by  a  foreign  vessel  to  Ncnv  York,  but  American  vessels  are  carry- 
ing goods  from  San  Franrisco  to  Vancouver,  British  Columbia,  there 
to  be  shipped  to  New  York  by  the  Canadian  Pacific  and  its  eastern 
raihoad  connections  under  the  conditions  much  less  favorable  to  the 
protectiou  of  tU^  reveuues  tnom  customs  than  in  the  former  case.    It  will 


U 


;f  i 


u 
n 


;;i 


■":  i 


910 


EELATTONS    WITH   CANADA. 


hv  easy  for  tlio  coirniiitt*'*'  to  prociiro  an  opinion  from  tho  law  ollicfvs  of 
llu'  (rONornincnt  upon  iliis  >sul»jt5et,  and  I  tliercfoio  k-avc  tJjc  nialter 
Willi  a  siini)le  exi)n'8sion  of  niy  views  in  logartl  to  it. 

There  is,  however,  a  feature,  of  the  foreign  traiisir  tnuh^  thron^'h  Vic- 
toria wliich  ai)pears  to  be  openl.y  ami  lhi^rimtl.v  in  violation  oi'  botli 
the  letter  ami  spirit  of  the  law.    Our  existing  laws  eoncernin^  the 
transpoitution  of  dutiable  ftoods  from  sea-ports  of  the  United  States 
to  interior  points  in  the  United  States,  for  examjile,  im))orted  goods 
from  iSan  I'raneiseo  to  Chicago,  refpiire  that  a  consular  invoice  ol\siicli 
goods  shall  be  delivered  to  tlie  customs  oHicer  ac  San  Francisco  for  ex- 
amination :  that  entry  of  the  goods  shall  bo  made  at  that  port;  that  the 
goods  .shall  be  sliii>ped  under  a  transportation  bond  for  the  s(^<'mit.v  of 
the  duties;  that  the  railroads  over  whieli  the  transportation  takes  plficc 
shall  also  be  bonded,  and  that  the  oars  in  which  they  are  carried  shall 
l)e  sealed.     But  at  the  present  time  foreign  goods  to  be  shipp(Hl  east  to 
points  in  the  United  States  are  received  by  an  insjiector  of  customs  of  tJie 
district  of  Paget  Sound,  who,  as  I  aui  informed,  has  been  made  a  cou- 
sular  agent  of  the  State  Department.     Ih^  simply  certitics  to  manil'ivsts 
of  American  goods,  and  forwards  them  without  examinatiou  or  certify- 
ing  to  the  invoices,  and  without  bonding  the  goods.     The  whole  pro- 
ceeding appears  to  be  unwarranted  by  our  la^'.    The  Canadian  I'ai'itic, 
being  a  foreign  corporation,  can  not  execute  a  boiul  to   the  IJnitecl 
States  tor  the  faithful  performaiua'.  of  any  service  whatever.     So  witli- 
out  any  authority  of  law,  and  by  what  a[)pears  to  be  a  uuinifest  abro- 
gation of  the  law,  Vancouver  is  exempted  from  important  requirements 
whi(;h  apply  to  San  Francisco.    Thus  the  administrative  brane.h  of  our 
Government  is  actually  aiding  the  great  politico-military  railroad  of 
Canada  in  its  work  of  turiung  commerce  from  Anun-ican   shijts,  from 
American  sea-ports,  and  from  American  transi)urtatiou  lines  by  the 
sheer  force  of  Canadian  and  liritish  subsidy,     1  hesitate  not  to  charac- 
terize this  discrimination  against  an  American  seaport  as  disgraceful  to 
the  Government  of  the  United  States,  aud  a  matter  which  calls  for  im- 
mediate correction. 


TEA NS- ATLANTIC   AND    TRANS-PACIFIC    KTEAMER    LINE   CONNECTIONS 
OF   THE  CANADIAN  PACIFIC  RAILWAY. 


I'!*  ?. 


Soon  after  the  completion  of  the  Canadian  Pacitic  Railway  in  18SG,  a 
line  of  steameis  was  established  between  Vancouver,  r>rilis!i  Columbia, 
and  China  and  .lapau.  Stejis  IniA  e  also  been  taken  for  the  establishnunt 
of  a  British  steamer  line  from  Vancouver  to  Australia  and  New  Zealand, 
and  another  Britisli  steamer  line  irora  St.  John,  New^  BrunswicU, 
and  Quebec  to  Liverpool.  The  ]>rovisions  of  huv  for  the  <\'Jtablisli- 
mentof  the  British  lines  just  mentioned  are  embraced  in  the  foiluwjiig 
act  of  the  Dominion  Government  passed  at  its  session  of  1S89 : 


AN  A(,'T  lolating  to  ocean  stoatnrfiip  subsidieB. 

Her  Majesty,  by  and  with  the  ndcice  and  consent  of  tho  senate  and  house  of  oommoiia  oj 

Canada,  enacts  an  follows: 

(1)  Tlio  governor  in  council  may  grant  to  any  individual  or  company  asnlisidynoi 
excccdiiig  ilwi  wuni  of  tvvc,ntv-liv<>  tlioiiKiind  |iouiids  stt^rling  (u-r  jinnnni,  lo  t\»Hisi  in 
CHtal>liwliiii^r  an  ciiVctivc!  fialiiightly  stoaniKliip  siM-vic!^  hctwci'ii  Briti,s1i(jMluinl»ia  and 
the  Australian  <'<)l()hi(?s  and  New  Zealand,  or  sncli  proiiorrion  thcn'oian  is  decided  oi; 
by  the  governor  in  i  onnoil  to  ashist  in  estiiMi-'-ldng  a  monthly  .service  with  tho  HJiid 
ccaintrivs,  huoIj  sub.-iidy  to  b  -gratiUid  for  sneii  term  ol"  year.i,  not  excee(iing  tou,  auil 
on  Huuh  conditiouH  as  liie  governor  iu  couuci]  considers  oxpccliont. 


J  t' 


KELATTONS   WITH   CANAT>A. 


911 


(2)  Tilt' u^vfnior  ill  council  niiiv  ^rjitil  to  ,in,v  itir1ivi*1iial  or  company,  to  wlioiii  tlicrn 
is  i;r:iiiti'(!  Iiy  tin!  (inv<Miiiricnt  ol'tliu  lliiitrd  Kiiirriloiii  llic  iiiil  li(M'><iiiiil't<'r  tii(<iitiorit>(l, 
a  hiilf-idN  Mill  cxi'ciMliii^  tJK^  HiiMi  (if  lif'tct'ii  MioiiMiiiil  |i(>Mn(ls  sUM'liiio  |it;r  aiiiiiiiii,  lor  a 
iiKUiililv  Mlciiiiishiii  NtM\  i('o,  or  a  suliHidy  not  oxtuM^diiij;  titir  miiiii  oI'  twenty-live  tlioii- 
s  iiiil  ]Miiiii(l:-i  ^t«'i  liii;^  |u'r  iiiiiiiiin,  Tor  a  torlui^litly  HteaiiiHlii|i  .serviee,  lielween  HritiHh 
(.Oiiiinliiii  and  China  and  Japan,  sindi  HnliMJdy  to  he  granted  (or  miicIi  lerni  <d'  years 
jiiiil  iin  Hill  li  coniiilionM  as  tlie  j;overi)or  in  council  connideiM  oxpcdieiit :  Provided  ul- 
\\!ivs  iliat  (Liirin;;  sncli  term  the  (Jovcrnnicnt  of  the  United  KiniLjdom  j>ranlM  to  niicIi 
imliviiinal  i>r  company  a  suhhidy  ol'  not  Icmh  than  I'orty-tive  thousand  poundM  Mt<M'linjj 
|irr  aiiniiiii  lor  the  monthly  seixice.  or  of  \)<>i  less  llian  Hcveiitylivc  T  .,.*nd  poiuulH 
sliMliin:'  per  annum  for  the  f'ntiiinliliy  service  almve  incritioned. 

(.1)  The  ;;iiveiii(ir  in  coiineii  may  enter  into  a  contract  for  a  term  not  oxceedinft  ten 
yeiirs  « illi  any  indivuhial  or  <'ompnny,  for  tlie  performance  of  a  fast  \\eel<ly  wteani- 
(tliip  service  heiween  ("auaila  and  the  ITiiiled  Klnj;dom,  nwiUine-  eoniiection  wirli  a 
Fr>ni'h  port,  on  Hiuh  terni.s  and  conditinu.s  of  to  |he  carria^^c  of  mails  and  olJierwiso 
iin  the  jjiivernor  in  couneii  tlcenis  cx[teUiunt,  for  a  suh.sidy  not  exceeding  the  sum  of 
live  hundred  thounatid  doUarH  a  year, 

Tliis  iict  provides  for  the  estiihlisliiiMMif  of  the  following  British 
lines  of  steamers : 

First.  A  fortniftlitl.v  litie  from  Vancouver  to  Australia  and  New  Zea- 
land, with  a  Canadian  subsidy  of  $125,0(10  a  year;  cHorts  being*  made 
for  •!(' "iiring  an  additional  subsidv  Ironi  Australia  and  New  Zealand  ; 

S'ooiid.  A  line  I'roni  \'am;ouver  to  ('hiiia  and  Japan,  with  a  subsidy 
■■  of  *.iOO,t)<lO  in  the  case  of  a  inonlhly  service,  and  of  $500,000  iu  the 
Ciisi'  i)f  a  fortiiiohtly  service;  and 

Third.  A  Ihilish  line  of  sK-aiiiers  from  St.  John,  New  I»runswi(;k,  to 
JjivfM'pool,  with  a  ('anadian  subsidy  of  $r)00,000  a  year.  This  is  t;o  be 
suppleaiinted  by  a  I»ritish  sul)sidy,  the  amount  of  which  is  not  known, 
liiir  is  publicly  statetl  at  $oOO,000  a  year;  making  a  total  subsidy  of 
$S()U,(tOO  a,  year. 

The  steamers  of  the  Pacific  line  to  China  and  of  the  Atlantic  line  to 
Kiij^land  are  to  be  so  constiu(!ted  ai*  to  be  readily  available  as  armed 
cruisers  in  the  ndlitary  navy  of  Creat  Britain,  and  in  cmisideratiou 
tiicreot'  they  are  to  receive,  in  addition  to  the  sums  above  mentioned, 
iirruiii  admiralty  or  navy  subsidies,  the  amount  of  whicli  is  not  pub- 
licly Iciiown.  Jt  is  understood  that  this  admiralty  subsidy  consists  of  a 
construction  bounty  and  a  navigation  boniiry,  wiiich  is  to  run  for  a  term 
of  years.  The  steamers  of  the  Atlantic  line  are  to  be  of  large  size  and 
great  sliced.  This  j»art  of  the  general  scheme  of  British  transportation 
from  Liverpool  to  Yokohanni,  Hong  Kong,  and  Australia  has  been  de- 
liyed  by  Canadian  I'acitic  efforts  to  get  pixsscssion  of  the  part  of  the 
Inteitiational  Railway,  which  extends  from  St.  John,  New  Bninswiek, 
to  Halifax.  There  can  be  little  doubt  of  the  tiual  consummation  of  the 
entire  scheme. 

In  ihe  entire  range  of  history  there  is  norhing  in  the  nature  of  gov- 
ernmental {iroinotioM  of  commercial  and  political  objects  which  can  be 
comparetl  to  this  enormous  schettu^  of  subvention,  emi»raciiig  the  Cana- 
ilian  racilic  Railway  with  its  giants,  [irivileges,  and  fiMiuiliises,  and  its 
connecling  ocean  steamer  lines,  receiving  botli  commercial  and  naval 
subsidies. 

The  foregoing  facts  em])hasi/e  and  serve  to  ehuadate  the  point  which 
i  have  before  stated,  namely,  that  the  LTnited  States  is  contronted  at 
the  north  by  a  government  which  is  thoroughly  committed  to  a  polit- 
ical i)olicy  involving  a  [»articipation  in  commerce  which  is  essentially 
aggressive,  toward  American  interests.  This  is  the  real  (piestion  which 
We  have  to  meet,  and  it  must  be  detcnniiied  iu  order  to  protc(!t  Ameri- 
can ships,  American  seaports,  and  American  transportation  lines. 

The  i)eople  (d'our  Pacillc  coast  States  now  clearly  see  the  imi)endinff 
danger  and  have  asked  Congress  to  protect  them  against  it.    More 


i 


.. 


.  J' 


mr^. 


012 


RELATIONS    WrTTf    CAiVADA. 


rtwntly  a  voice  foinos  ii))  IVotn  the  Sialic  of  Maiiui,  askinfj  that  liiiiita. 
tions  sii;ill  be  st't  to  siK^li  cnfroiiclinu'iit. 

Senator  DolPif.  I  would  likr  toask  yoii  wliat  is  tlio  ohjocttion  to  allnw 
iiifT  tins  ('iiiiiitliaii  railroad  (niimiiiji'  tlinm^li  MaiiH-)  and  tin*  Canadiiui 
subsidized  stiMnisiiip  liin's  takiiiji'  tlicjiiodiUH'.  of  Miuncsola,  Wisconsin, 
tlic,  ])akoTas,  Illinois,  and  oven  of  tli«>  I'acillc  coast,  and  transportin;: 
it  to  lOuropean' markets  .'  AVliy  should  wf  object  to  their  Kubsidizm;,' 
lines  to  carry  the  produce  of  our  country  more  cheaply  to  forei«;n  iiuir 
kets  than  our  own  railroads  and  slcaniship  lines  can  do  it. 

The  Wrj'M'.ss.  Senator,  1  will  answer  that  ji'cncially  in  tliis  way:  it 
is  a  question  before  this  conunittce  and  before  C!nn};res8  an.,  thecountiy 
for  consideration  as  to  whether  that  little  (. 'an  idian  (lovernnient,  in  am- 
nt'cliori  with  (jicat  I'ritain,  shall,  l)y  the  power  of  subvention,  divert 
tlie  commerce  of  the  United  States  trom  (air  own  transportation  lines 
and  from  our  own  seai)orts.  as  well  as  from  our  ow  n  shii)s,  if  w(^  are  ^n- 
in^  to  build  sliips;  whether  it  will  i)ay  ud  to  allow  (»ur  own  throats  to 
be  cut. 

Senator  DoLrii.  What  do  you  say  as  to  the  prodiu-ersof  these  luod- 
ucts  i?  At'?  they  not  beiu'fitcd  by  the  cheaper  tians]»ortation  afforded 
by  the  Canadian  lines  / 

The  Witness.  Tliere  may  l)c  such  advatita;;!'  to  the  producer,  bur  ir 
strikes  tne  as  beinij  deirimental  j^'enerally  to  the  public  interest  and  to 
us  as  a  nation,  in  view  of  oui'  oblif^ation  to  nuiintain  and  prote(!t  the 
various  interests  of  the  country.  It  would,  in  my  opinion,  be  disj; race- 
fid  to  allow  such  a  state  of  alfairs. 

Senator  DnLni.  Vour  tirst  i>roposition  is  that  it  injures  our  owa 
railroads  f 

The  Witness.  Our  own  railroads  and  sea  ports. 

Senator  Doj.tii.  That  it  would  l)uild  up  the  merchant  marine  nf 
Great  Britain  and  juevent  the  building  up.  of  our  own.  But  you  kudw 
the  interests  of  tlie  [troducei'  are  generally  supposed  to  be  antagonistic 
to  those  of  the  transportation  companies  i 

Tlie  Wi'j  NEs.s.  I  know  that  i(h^a  is  entertained.  That  has  been  an 
idea  which  has  j»revailed  on  the  Pacilie.  coast  and  in  your  own  Stale. 
and  you  know  rlie  extent  of  public,  sentimeiit  here  and  there  on  tlmt 
subject.  But  1  hold  that  when  it  comes  to  a  clean-cut  issue  of  foreign 
p)verninent,d  aji^ression  upon  American  interests,  we  ought  to  present 
an  unbroken  Iront  against  such  aggression.  Just  such  i>.  case  now  ci»n 
fronts  US. 

» 

ACTION-  OF  Tini  COMMi:i?CIAL  AIS'D  INDUSTRIAL  UODIES  OF  THE  PA- 
OIFIO  COAST  [N  UEGAlll)  TO  OANADIAN  rAGlFlO  RAILWAY  K-V 
CROACHMENT. 

The  i)eople  ol'  the  I^u'ific  coast  at  last  appear  to  be  awalce  to  the  dan 
gers  of  J'acitic  Bailway  cncroacliment.  A  resolution  \^as  unanimo'i>ly 
adopted  by  the  Chamber  of  Commerce  of  San  Francisco  on  the  2;>d  ot 
July  IksI,  inviting  the  commorcial  and  industrial  bodi«'s  of  the  Tacitic 
coast  to  meet  in  <M>nlerence  at  San  Francisco  mainly  for  the  pnipose  of 
considering  encroachment  made  upon  the  maritime,  commercial,  and 
transportation  inteiests  of  that  section  of  the  conidry  by  means  of  the 
enormous  snbventi(ms  granted  by  the  Canadian  Government  to  the  Pa 
citic  liidlway,  the  special  Canadian  legislation  favoring  such  encroach- 
ment, and  the  subsidies  granted  by  the  Canadian  and  British  Govern- 
ments to  ocean  steamer  lines,  which  are  threatening  the  destruction  of 


RELATTONfl   WITH   CAXADA. 


913 


Aiii'ri»'n"  Htcani  niivijjution  on  tlio  PiKJiflc  (>(5ean  uiid  tlie  divcrHion  of 
lr;i(l<^  fVoiii  I'acillc  coast  portH. 

Tli.it  ('oiili'niK'C  was  held  iit  San  FrjUKM.sco  on  the  L'9th  and  30tli  of 
Jiiiy  last.  In  my  opinion,  it  was  one  of  the  most  important  asyoni- 
MiifTcs  hold  in  (hi.s  country  (]urin^'  the  last  twenty-tive  yeans.  Kefer- 
riiiu  H)  the  V,  iioh^  scheme  oi'  r.ritish  and  ('anadian  suhvention,  tlu;  report 
of  I  la'-  conl'erenco  declares  that — 

With  snili  Hiit'ciiil  a(ivuiitiijj;t"s  the  Ciiiiuliim  Pacific  niui  .ilTord  to  quote  ratrn  which 
must  (Irivt^  tlio  Aincrioiin  .strainer  IIijoh  out  of  tho  China  tnwlt;,  and  indict  an  alnitrnt 

irn|>ii;ilili'  injury  upon  8aii  Fiamusoo. 

'ihe  r»'port  of  the  conference  also  predicts  the  destruction  of  the 
Aniericnn  steamer  lines  now  running,'  on  the  Pacific  Ocean  to  Australia, 
Nl'W  Zealand,  (he  Hawaiian  Ishmds,  the.  I'iji,  and  Samoan  iMiaiidvS,  and 
to  Mi'xico  and(;»'ntial  AnnTica  by  J'ritish  subsidized  steamer  lities 
tuiiuiii;'-  part  of  a  j;eneral  stiheuie  for  capturing-  the  commerce  of  the 
sc.is  unless  the  lTni1e<l  States  Government  shall  adO£)t  vijrorous  uieas- 
tu'cs  for  preventiu};'  such  a  national  disaster. 

The  commercial  calandty  which  tin;  merchants  and  'other  business 
iiu"i  of  the  Pacillc  coast  so  clearly  see  to  be  impending,  and  against 
which  they  asU  the  (lovernment  of  the  United  States  to  protect  them, 
is  not,  as  before  remarked,  the  result  of  a  strn^'s'^'  between  private  eti- 
ttTprise  in  the  two  countries,  but  the  outcome  of  a  stru|Ljp:le  as  between 
piivate  enterprise  in  I  lie  United  States  afjainst  a  Canadian  railroad 
(•()r[»oiation  which  has  received  aid  from  the  ])ominion  Governnient  in 
I'xccsa  of  its  cost,  winch  has  the  active  support  of  that  Government  in 
ill!  its  encroacliinents  upon  American  commerce,  and  which  has  been 
iipitropiiately  styletl  "the  Dominion  Government  on  wheels."  [t  is 
aiso  the  outcome  of  a  strufjf^lo  ou  tho  sea  between  private  enter])rise  in 
tlui  United  States  and  British  steamer  lines  so  hiy;hly  iirotected  by  sub- 
sidy us  to  take  tln^  (jontest  out  of  the  arena  of  eomniercial  comj^etitiou. 

The  commercial  and  political  schemes  of  Canada  and  Great  Tiritain  are 
n!-eiiforc(-d  l)y  t.he  formidable  fortress  and  naval  station  erected  by  the 
^.'^oviriiirucnts  of  these  (Countries  at  K'^quiinault  on  tlie  Island  VaTieouver. 

Ceriain  of  the  chief  oltiiit-rs  of  thi;  Canadian  Paeiljc  Railway  have  de- 
c',;red  that  tin'se  works  are  merely  intended  io  serve  as;  defenses  against 
a  po.Svsible  naval  attack  by  Ilussia.  But  this  is  manifestly  absurd,  and 
ir  is  so  re<j,ard(Ml  by  military  men.  liiissia  sold  Alaska  to  the  United 
Staics  (o  avoid  the  risk  of  liaAinj?  it  cH.i)t(ir(^i  by  (irrut  Britain  in  the 
iviMit  i>f  war,  and  tOva\(>id  warfare  with  Great  IJrita'a  iu  that  part  of 
the  world,  Tlie  evident  <>hjoct  of  the  Esqiumault  vorks  is  to  hold  tho 
conijiieririal  vantaj^e  of  piotected  and  aoj;res8ive  transportation  lines 
"across  llritish  North  Anterica,  connecting  Liverpool  with  China  and 
and  .lapan. 

In  an  editorial  notice  of  tho  assembling  of  the  commercial  eonfer- 
eii<:eiU  Sjmi  I'^rancisco,  the  Kvening  Bulletin  of  that  city  stated  the  mer- 
iis  of  liie  whole  case  in  a.single  paragraph,  as  follows; 

lUietly  stated,  all  tljo  (jnesfions,  to  be  fonsitlored  may  bo  reyolved  iu  tliis  one: 
^\li;it  powci'  is  to  have  tlic  Lomniorcial  sn))rpruacyou  that  part  of  the  PacificOcean 
b'liderinj,'  tliti  wt'steni  side  of  North  Ainorioaf 

This  summarizes  the  whole  case  whi(;h  now  demands  consideration  by 
tlie  Filtytirst  Congress  of  the  United  States. 

Co[»ies  t)f  the  proceedings  and  resolves  of  tlie  San  Francisco  confer- 
eiKic  were  sent  to  each  Senator  and  Be^jresentative  from  the  Faoilio 
co.ist,  with  the  request  that  they  would  use  every  consistent  endeavor 
to  iiliuc  the  matters  hereinbefore  mentioned  before  Congress. 
25552 58 


a 


I 


11 


914 


RELATIONS   WITH   CANADA. 


TnK  MKNACR  OF  THE  CANADIAN  PAfMI'IO  RAILWAY  COMPANY  AM. 
TIIK  I'O.MiMhKriAI.  INTKUKWTS  OF  THK  8TATK  OP  MAINK  A}ID  Till; 
MKASIUK  NOW  I(1U'"C)KK  TIIF,  HENATE  FOR  I'llKVKNTINU  THK  THRKAT- 
ENIN(i   DAMiKi:.  • 

It  liaa  luM'ii  tlic  InnKMjt  of  Mi<<  people  of  Canad;!  for  more  tliaii  a 
liiUMlrcil  yoarstliiit  the  kccoikI  aiticU'  «>!  tl)*'  liraty  of  ihmcc  coiicIiiiIimI 
Willi  (Iroat  Hritaiii  at  J'aris  ScpteinlMM' ;.{,  1T'.>3,  and  hearin;;  tlic  liotuticd 
iiainoN  »il"  iloliii  Adams,  iW'iiiamiii  l'"i.nd;Iiii,  ami  .J(»liii  .lay,  waw  not  so 
drawn  as  to  Miclndo  tlu^  wludo  of  the  State  oi'  Maine  in  the  I'liti.sh 
ii(»rth  Amerifian  ])(>ssessions. 

In  ti  nieasiiie,  however,  this  assnined  niist'oitnne  was  overcome  i)y  the 
privileires  of  tlie  transit  trade  accoidt'd  to  the  (Irand  Trniik  l\ail\v;iy, 
privile^'es  which,  as  I  have  attempted  to  show,  iiave  been  niiitnaliy  lien 
eficial  to  the  eoinmercial  interests  of  botli  conntries,  and  I  am  bound  (i» 
say  have  been  exorcised  by  the  (Ir-uid  TninU  Kailwn.\  (,'onipany  in  an 
lionorableaiid  just  manner.  Assumin;;,  apjiareiitly,  tliat  if  one  Catia- 
ilian  laih'oad  eonhl  do  iier  so  niudi  yood,  twoCanadian  liiihoads  iniL,!! 
do  her  twice  a<  mnch  vi'ood,  the  State  of  Abiine  has  alh»wed  the  Cana- 
<lian  I*;icitic  Jiiillway  t"om|»an.\  to  accjniro  the  ownership  oCa  line, across 
her  territory,  and  (;onnectinp:oii  tin'  eastern  side  of  tiie  State  with  lines 
extendin^i'  to  St.  .Tolm,  New  Ibiinswiek,  and  to  Halifax,  Nova  Scotia. 

Tin-  portion  of  this  line  in  the  State  of  Maine  j.asses  thron<;h  a  forot 
rofiion  far  north  of  the  central  line  of  the  population  of  that  State. 
About  93  j.er  cent,  of  the  population  of  Maine  ri'side  south  of  tins  line, 
and  only  7  per  ceni.  m.rtli  of  it.  (l<u'tain  towns  and  j.arts  of  the  State 
will  undoubtedly  be  benelited  by  this  tbreign  line,  while  larjjer  towns 
and  much  the  iar;;er  part  of  the  State  will  j»rosnmably  be  uniill'eeted  ''.v 
it,  or  receive  thereby  |K)sitive  detriment.  The  commercial  lineSj  u|mih  • 
Avhicli  the  prosfierity  of  tiie  State  of  Maine  chietly  <lepends,  tend  toward 
T'orllanil  and  other  sea-board  cities  of  New  KuKland.  IJut  this  Cana- 
dian I'acitic  Railway  Vu\c,  with  its  powerful  C-amMlian  (rovt-rnmental 
baekin;^,  tends  to  turn  western  comnuirce  fnnu  these  American  so- 
ports,  an<l  to  turn  lo<;id  traflic  alonjf  its  entire  line  toward  Montreal,  and 
toward  St.  John,  New  IJrnnswick, 

This  section  of  the  Canadian  i'acific  llaiiway  was  opened  for  tratfic 
in  June,  1«8(),  and  it  came  into  .beinj,'  with  a  Canadian  and  British  back- 
ing of  subventi<ni  which  ar  om-.c  made  it  formic  able.  The  jMntion  ol  the 
line  extending  from  the  St.  Lawrence  Itivei  to  Mattawamkcaj;-,  Me.,  is 
to  receive  an  annual'subvcntion  of  .SlHfJ.o'.a;  a  year  from  the  Don.inion 
Government  for  twenty  years.  This  is  Muiply  a  pri<!e  paid  by  a  ibrci;jii 
governiiumt  for  the  diversion  of  American  commerce  from  American 
seaports  and  American  transportation  lines.  It  has  none  of  the  recip- 
rocal aspects  of  the  transit  trade  about  it. 

Under  I  he  terms  of  an  act  of  the  Canadian  Parliament,  wliicii  1  have 
already  presejited  to  you,  a  steamer  line  composed  of  large,  lirstclass 
vessels  of  higl'  power  and  constructed  so  as  to  be  available  as  armed 
cruisers  in  timco!  war  is  to  be  established  between  St.  dohn  or  llalilax 
and  Liveri.ool.  This  line  is  to  recjeive  $500,000  a  year  from  the  Cana- 
dian Government.  As  already  stated,  an  additional  subsidy  of  $300,000 
a  year  is  ex])cctod  to  be  granted  to  it  by  the  Uritish  Gov'ernnu'nt.  be- 
sides the  admiralty  subsidy  granted  to  all  fast  iiritish  merchant  steam- 
ers available  as  armed  cruisers.  The  total  subvention  to  this  line  lor 
diverting  the  coui.se  of  our  own  commerce  will  therefore  amount  to  over 
|1,OOOJI(JO  a  year. 


RELATIANS  WITH   CANADA. 


.  015 


r  cnii  not  horo  rofiain  froin  coitfriistiii;;  tin*  JipiitliPlic  course  pursued 
|)\  oiii' own  (rovei  iiineiit  in  f';iiliiii^'  to  iitY'ortl  luleqinite  piole.elioii  to 
Aiiu-i'icaii  eoininereiiil  lines  on  the  l;in(l  and  on  ilie  sea  witli  tlieener<;etUr 
and  iiyj^ressive  policy  pursued  l)y  tho  Cainidian  and  lintitsh  (iovern- 
iiifiits.  lividently  tins  lateHt  act:  of  eucroaeliineiit  menus  the  upbuild- 
iii^Mjt  the  eouiiuerce  of  St.  John  or  lliililax  to  the  lastinjj  injury  of 
J'oithuid  an«l  the  serious  detrinuMit  of  Boston. 

r.ut  Id  nuike  the  luaUi'r  woise,  oui  own  iuterstati^coniuienro  act,  or 
its  iidniinisiration,  so  (tin  rates  as  to  heli>  this  a;.j|4r<'.sHive  Canadiai)  lino, 
iuiil  to  restrain  our  Anieri(!aii  rjulroads  even  from  a  fr(M'  cniripjtitiou 
wiLli  it.  This  is  shown  in  the  iicular  of  the  Interstiite  ('ouiinereo 
Coinniission  ol"  Mareli  L'.'i,  1S.S!>.  This  cinMihir  re(piiies  that  the  i-ail- 
roads  of  this  c(Uintrv  must  accept  their  proportion  ol  thronjufh  export 
rates  t<»  or  fi(uu  points  Ix-youd  the  seji,  as  tlieir  inland  ihtmi'slie  lateoii 
tralli<!  not  movinjx  lieyond  our  boundaiies.  At  the  same  time  ('anada 
li.is  iu  tor(!<i  an  act  in  terms  exempting  her  railroads  from  such  ro(pnr(;- 
iiit-iil,  and  even  incitiujj  liuui  to  take  all  the  ailvantaj^e  which  the  rela- 
tive situation  of  alVaiis  in  the  two  countri«5S  alVoids. 

Tlie  inevitable  eflecf  of  onr  apafli>  and  our  rest  rictive  legislation  and 
adverse  a<lmiiiisiiati(»n  of  law,  ui  coijunctioii  with  the  eiu'-r^ry  and  a<^- 
<,nessive)H)liey  puisue<l  by  I  he  Canadian  and  nritishCiovernments,  must 
lie  to  crii^de  the  foreij;n  commeiwie  of  our  o\\  n  sea-[)(>rts,  and  to  i>romote 
tlie  ]»i()speriiy  of  Canadian  seaports. 

It  is  nut  at  all  surprising;,  theiclore,  that  under  this  adverse  condition 
ofaHairs  the  State  of  Maine  should  be  sonuMvliut  alaiiued  at  the  threat- 
(■!ipd  di\ersion  of  commerce  from  her  chief  sea-port,  or  thatj  Senator 
Jlale  of  that  State  shoidd  have  presented  Senate  bill  515,  to  set  limits 
to  tiie  powers  other  enerjijetie  foreijifu  invader. 

AVithout  attemptiufT  any  elaborate  exegesis  upon  the  provk^ions  of  that 
lii'.I  I  will  say  that  it  pro\  ides — 

First.  'f!mt  western  produce  shipped  om^e  throuj^h  Canada,  say  at 
8anlt  St.e.  Marie  or  Detroit,  if  bound  to  Euroi)'.i  by  the  Canadian  Tacilio 
route  across  the  State  of  Maine,  shall  be  regartled  as  dutiable  when  it; 
reaches  the  western  border  of  Maine. 

Second.  It  i)roposes  to  char;;e  duties  twice  on  all  goods  imported 
iiito  the  Tlniteil  States  over  this  route  if  such  goods  shall  cross  the  ter- 
rilory  of  the  Cnited  States  more  t!mn  om-e. 

Third.  Ft  provides  that  all  goods  imported  into  Canada  from  foreiga 
conntjies  or  ex[)orte,d  from  Canada  to  foreign  countries  over  this  route, 
which  shall  cross  the  territory  ot  the  United  States  luore  than  once, 
sliail  be  dutiabhi. 

I  commerul  the  far-seeing  and  patriotic  purjioso  of  the  Senator  from 
Maine,  and  hope  his  bill  may  rc(u;ive  the  consideration  which  it  deserves 
ill  Congress. 


TnE  P0SSI7JTI,1TY  OF  CANADIAN  RETALIATION. 

The  question  has  been  suggested  as  to  the  elfect  which  the  suspen- 
sion or  pro|ier  i-egulation  of  the  privileges  of  the  transit  tratle  on  tlio 
we;i|'rn  ;:a'do  of  the  continent,  and  other  measures  lor  the  protection  of 
American  rights  and  interests,  might  have  upon  American  interests  iu 
c»M-  the  Canadian  Crovernment  should  see  fit  to  retaliate  by  curtailing 
tin  priviU'gesof  the  transit  trade  on  the  eastern  side  of  ^le  continent. 
Nothing  could  be  more  absurd  than  to  apprehemi  any  danger  of  this 
><ort.  In  the  entire  range  of  our  Canadian  relationship,  from  Halifax  to 
Vancouver  the  United  States  holds  an  overpowering  advantage  over 


91G 


RELATIONS   WITH    C^ANADA. 


i 


Canada,  and  at  ovoiy  point.  TIio  SMsponsion  of  tho  transit  trade 
would  I't' of  con)i»iuative!y  small  disadvantaj;o  to  the  United  Slates, 
wlicvoas  it  would  Itf  utterly  disastious  to  (Janada. 

If  the  I)omiiii()n  (loverunient  sliould  forl)id  tl>e  tnin.sportation  of 
Cmadim  goods  in  bond  mid  tree  of  duty  over  the  subsidized  Canadian 
Tacitic.  line  across  the  .^tate  of  Maine,  or  should  forbid  the  transporta- 
tion of  goods  across  the  tenitory  of  the  United  JStates  through  tiie  ports 
of  New  York,  Boston,  and  I*ort!and,  Me,,  in  the  cmiduct  of  the 
foreign  commerce  of  Caiiada,  esj>ecially  during  the  winter  months,  or 
should  forbid  the  carriage  of  American  me.rcluunlise  from  one  ])oint  in 
the  United  States  to  another  i)oint  in  I  lie  United  States  across  the  in- 
terjecting territory  of  the  Provinces  of  Ontario  and  (»>uelH'C,  except  upon 
j)a>uientof  duty,  sncli  action  would  wieck  the  coinniercial,  industrial, 
.ind  transportation  interi'sts  of  Canadaand  at  once  disp«d  the  cherished 
<lreani  of  Canadian  commercial  supremacy  u])on  this  continent. 

To  assume  that  the  suspension  or  pioper  regulation  of  the  privileges 
of  the  tnnisit  trade  on  the  western  side  of  the  (;ontinent  would  load  the 
Dinninion  Governmtnt  to  retaliate  by  any  interference  whatever  with 
theeusfern  tT-ansir  trade,  wotdd  be  to  irnpeach  the  common  sense  of 
the  astute  and  exceedingly  able  men  who  noW'  control  the  political 
affairs  of  Canada.  Nothing  couhl  be  more  puerile  than  such  an  assuiPM- 
tion.  It  is  to-day  entirely  within  the  iliscretion  of  the  (Jovernment  of 
the  United  States  ro  alfoi'd  ample  protection  to  iVmeriiran  hsiieinien, 
American  shiiipiag  interests,  American  sea-ports,  and  American  trans- 
portatian  lines,  against  Canadian  encroachment,  without  the  slightest 
ground  to  apprehend  any  sort  of  Canadian  retaliation.  It  is  liigh  time. 
for  the  [leoide  of  this  country  toapjii'eciatc  the  fact  that  their  National 
Government  holds  a  preponderance  of  commercial  power  on  this- conti- 
nent as  absolute  as  the  yn'cponderance  of  its  military  power,  and  to  de- 
mand thai  tiius?i  who  are  charged  with  the  ali'airs  of  government  shall 
adoi)t  such  measures  as  shall  ])revent  any  interference  by  a  foreign 
])ower  with  the  course  of  the  development  of  our  domestic  or  foreign 
comniorce. 


CANADIAN  DENIALS  OF  THE  EKaiTS  OF  AMERtOAN    riTI/ENS :   UNJUST 

dis(;rimination.s  and  violations  oi'^  Tine  at  y  stj  dilations. 

I  now  come  to  the  consideration  of  those  outrages  upon  the  rights  of 
Ameri{!an  tlshermen,  to  those  unjust  diseriminations  against  American 
vessels  and  American  commerce,  and  to  those  violations  of  treaty  stip- 
ulations whicl  as  I  understand,  constituted  the  principal  reason  for 
the  creation  ot  ^ais  selpet  comnntt.ee  on  the  relations  existing  between 
the  United  States  a!»d  Canada. 


THE  FISUEHY  QUESTION. 

The  catching  offish  on  the  broad  Atlantic,  beyon*l  the  limits  of  any 
national  Jurisdiction  and  outside  the  end.>race  of  any  projecting  head- 
lands, is  commerce  and  it  is  tiavigation,  and  no  <piil>bling  over  the 
language  of  treaties  nor  tergiversation  of  <liplomatic  phraseology  can 
cast  the  shadow  of  a  donlit  uiH)n  rhe  proposition.  Tlie  jnactical  (pies- 
tion  is,  whi  re  are  we  to-day  commercially  in  our  fishery  interests'?  i 
answer,  outside  of  the  provisions  of  the  "transit  trade,"  which  is  far 
more  important  to  ('anada  than  to  the  Unite(l  States;  outside  of  the 
privile.i'.es  ot  re  exportiUion  from  warehouse  withoni  jiaymeMt  of  <luty  ; 
outside  of  thosi!  rights  and  privileges  of  maritime  recipr<»city  wh:cU 


RELATIONS   WITH    CANADA. 


917 


now  cliavii(!torizes  tlio  injintiiiui  intercourse  of  the  eivllizod  glolie,  aud 
outside  even  of  those  rijihts  of  ho^spitality  and  of  hiiniiinity  whi(;h  arc 
proninhMl  by  the  huinaiu'  impulses  of  rriankiiKl,  whicli  arc.  jiciieially 
secui'f'il  by  tn-aty,  and,  I  think,  arc  nniveiisally  rcgaicled  as  matters  of 
inteniati(nial  co)nity. 

These  {general  statements  descriptive  of  tlie  present  commercial  status 
of  tlh"  tisliery  question  relate  exclusively  to  tlie  open-sea  lisheries,  and 
do  not  touch  the  inshore  tisiieries,  and  the  curin^j;'  td'  tish  by  American 
fisiierinen  on  the  shores  of  Newfoundland  and  Ija))rador.  These  latter 
are  of  compai'ativcly  small  value  aiid  give  rise  to  (luestions  of  privilege 
wlticli  I  do  not  propose  to  consider. 

And  now,  Mr.  Chairman,  in  order  to  make  those  general  statetneuts 
])Oirectly  clear  1  shall  invite  your  attention  to  certain  specific  I'acts 
descriptive  of  the  exact  (jommerciai  status  of  our  fishery  relationships 
at  the  present  time. 

First.  Under  the  provisions  of  the  "  transit  trade,"  Canada  is  allowed 
to  sliip  inerchaiulise  of  excry  desciii>tion  acro.ss  our  territory  without 
pa.Mnent  of  duty.  That  amounted  during  the  year  ended  Jum>  30, 1880, 
to  Dearly  .S2i,0(l(),(H)(),  but  (.ianada  refuses  to  allow  to  Ameri.aii  fisher- 
nan  tbe,  comi)aratively  small  jnivilege  of  shipping  fish  across  her  ter- 
ritory f^e(^  of  duty,  althougli  obviously  bound  to  do  so  by  the  provis- 
ions of  Article  XXIX  of  tlie  Treaty  of  Washington. 

Second.  Under  our  wan'honsing  laws  the  ])rivilege  is  freely  accorded 
to  tlic  citizens  of  Canada  and  of  Great  L^ritain  to  enter  goods  of  every 
sort  and  description  at  »)Ui-  sea])orts,  and  there  to  hold  them  as  long  as 
they  may  choose  with  the  |)rivilege  of  exporting  them  at  any  lime  to  a 
foreign  ecuntry,  without  i»ayment  of  duty  in  this  country,  but  (lanada 
reluses  even  to  allov/  one  Americnn  vessel  to  lie  alongside  of  another 
in  her  jiorts  and  there  to  tran.s.^hip  a  cargo  of  (isli,  even  though  such 
ti.sh  becaught  in  the  ocean  far  beyond  any  jjretended  jurisdiction  of 
the  Dominion  or  British  Governments.  Dry  ami  salted  Cainidian  fish 
in  l)ond  an?  sliip])ed  in  considerable  quantities  to  American  ports, 
tlieuei^  to  be  exported  to  foreign  countries  free,  of  duty,  butnota  |>ound 
ot  American  iish  is  allowed  a  similar  privilege  in  ("anadian  |)orts.  The 
value  of  foreign  lisli  thus  exj)orted  I'lom  the  I'nited  States  during  the 
i^car  I'lided  June  30,  IRS\),  was  about  .*U5i.M>00. 

Tliird.  The  ve'sseis  ot  threat  llritain  and  of  Canada  umy  freely  j)ur- 
eliasc  in  our  jiorts  food  and  ship-stores  of  every  sort  or  description  in 
the  open  markets.  'J'iiis  piivilege  is  freely  acrcorded  to  (ianadian  fish- 
ing vessels,  which  visit  our  i»orts  to  a  greater  extent  than  American 
lishiiig  vessels  visit  Canadian  {.orta.  jfo  nation  which  pretends  to  lie 
civili/ed — excei)t  ("anada — doJiies  to  the:  vessels  of  other  nations  this 
pri\ilegc.  Tile  Dominion  ot  Canada  alone  absolutely  refuses  to  allow 
AimMican  fishing  vessels  the  right  to  purcJmse  in  her  ports  food,  bait, 
ice,  seines,  lines,  and  all  other  supplies  and  outfits,  uulesis  that  right  is 
jmrtdjased  by  ca.sh  payment  or  by  i)iivilege  for  v.hich  she  will  not  and 
can  no!^  render  an  eijuivalent. 

Fourth.  The  Coiled  States  and  all  oiler  nations  pretending  to  be 
civilized — exeejit  Caiiada— allow  t.he  vessels  of  other  nations  to  ship 
crews  or  i»art  of  crews  at  jtleasure  in  their  ports,  but  the  Dominiou 
(.bivernment  denies  this  privilege  to  Annnicaii  fishing  vessids. 

Fifth.  In  ease  a  IJritish  or  CJanadian  fishing  or  other  vessel  is  dis- 
abled at  sea  and  jnits  into  one  of  our  ports  tor  rei»airs,  she  may  there 
sell  her  cargo  or  unload  it  and  take,  it  on  board  again  witlunit  incur- 
ring duties  ui)on  it,  and  she  may  also  liave  all  necessary  repairs  done 
us  freely  as  an  xVuicrican  vessel,  but  if  an  AuiLrican  fisluuij  vessel 


918 


RELATIONS   WlTir    CANADA. 


i 

I 


I 


wilb  a  load  of  fish  caujibt  oOO  miles  out  at  sea  comes  into  a  Oiinadiau 
l)ort  in  distress,  slie  is  denied  every  one  of  tliese  privile{j:es. 

Under  the  j)reseiit  modus  vircndi  tliese  privileges  are  in  part  secured 
by  a  license  (eo  of  $1,50.  This  is  as  absurd  and  as  open  a  violation  of 
tlie  ri{;bts  of  navii^ation  as  were  tbo  sound  dues  fortnerly  exacted  by 
Denmark',  or  the  tribute  levied  upon  tbe  ships  of  otlier  nations  by  the 
Aljj;erine  government,  a  piracy  which  the  United  Stales  broke  up  in 
1812.  Only  last  S«q>tend)er  the  master  of  the  schooner  Loring  B.  lias- 
ketl,  of  Gloucester,  .Mass.,  put  into  Louisburgh,  Cape  Breton,  in  distress. 
He  had  lost  bis  sails.  A  new  set  of  sails  was  sent  to  him  from  Glou- 
cester  to  Sydney,  Uape  Breton.  The  collector  at  that  port  telegraphed 
the  Canadian  commissioner  of  customs  at  Ottawa,  asking  what  iio 

should  do  about  it.    This  reply  came  back  : 

\. 
The  CoiXECTDU  of  Customs, 

Syibiey: 

Foreign  lisliing  vessels  wiiliont  license  can  Jiot  have  sails  now  in  bond,  nor  any 
oilier  vestid  have  them  without  payuieut  of  duty. 

I.  Johnson. 

The  meaning  of  tins  is  that  the  sails  sent  to  this  American  vessel 
would  be  confiscated  if  she  was  not  licMnsed  under  the  modus  vivendi. 
In  other  words,  the  Dominion  Government  declared  that  this  vessel 
shall  pay  tribute  for  a  privilege  which  the  Uiiited  States  freely  accords 
to  all  Canadian  vessels,  and  wliich  the  humane  impulses  of  the  civilized 
and  even  l)alf-civilizf,Ml  world  accords  to  distressed  mariners  generally, 
Another  A^essel,  the  .1/.  /S\  Baftfon,  a  f«'.w  months  ago  arrived  at  Hali- 
fax in  di.stress  and  was  obliged  to  unload  her  catch,  which  she  did,  en- 
tering them  at  the  custom-house  and  paying  duty  ui)on  them;  and  for 
this  oll'ense  Mr.  Ross,  collector  of  customs  at  that  port,  was  summarily 
remi)ve<l  from  olVice  by  the  authorities  at  Ottawa. 

Seventh.  The  vessels  of  Great  Britain  and  of  Canada,  under  the 
treaties  of  amity  and  of  commerce  between  the  United  States  and  Great 
Britain,  may  freely  enter  our  ports,  there  lind  shelter  from  storms, 
remaining  as  long  as  they  i)lea.se,  and  i)urchasiug  all  necessary  supplies 
for  their  (;omfoit. 

Bat  American  hshing  vessels  are  denied  shelter  in  Canadian  ports? 
and  the  rigbr  to  purchase  food  or  water.  In  considering  this  outrage- 
ous denial  <>t  the  rights  of  commitn  humanity  to  American  fishing  ves- 
sels the  Hon.  Daniel  Manning,  Secretary  of  the  Treasury,  in  an  otiicial 
lettei'  dated  Febiiiary  5,  1887,  characterized  it  as  "  an  aitt  of  biirbarisnv 
tit  only  for  savages,"  #  #  #  "  as  eontem[)tible  and  odious  as  for  a 
Government  coiuinetinga  naval  war  to  lire,  in  these  days,  on  a  hospital 
ship  atiested  by  luir  color  and  thig  and  lilleil  exclusively  with  the  sick, 
wounded,  or  dying,  their  surgeons  ami  ii arses,"  And  further,  in  de- 
scribing the  inhnmanily  and  brutality  of  ihe  Canadians,  Secretary 
.Manning  told  of  !ui  Aaierican  erew  \vhi(;h,  during  the  summer  of  JS87, 
rescued  tbe  crew  of  a  wrecked  Canadian  vessel,  but  on  entering  a 
Canadian  port  to  land  th<'s«^  men  they  W(^re  denied  the  privilege  of 
l)urchasing  food,  of  which  they  were  sadly  in  need,  and  were  rudely 
hustled  out  of  port. 

In  his  s])ecial  message  of  August  LM,  1S,S8,  President  Cleveland  char- 
acterized the  conduct  ot  the  Canadians  in  terms  almost  as  severe  as 
those  employed  by  Secretary  Manning. 

Meanwhile,  the  t/ana<lians  appear  to  have  lost  their  heads  in  the 
delight  alTorded  by  the  success  of  their  outrageous  conduct. 

At  the  present  time  our  tisheiies  are  carried  on  under  the  privileges 
secured  by  a  so-called  modus  viccndi,  by  which  Americau  vessels  pay 


RELATIONS   WITH    CANADA. 


919 


for  oxomptioii  from  some  of  tliese  outrageous  disabilities  at  tlio  expense 
of  ;i  license  fee  of  $1.50  per  ton,  an  arrangement  whioli  Mr.  Eeed, 
Spciilvcr  of  the  Hou.se  of  Kcpresentatives,  lias  aptly  eharacteri/ed  as 
>'a  inoiic  of  dying,"  rather  than  "a  mode  of  living."  It  is  essentially 
iiu  agiecinent  to  be  about  half-way  decent  for  a  consideration,  and  as 
siicli  I  tiiink  it  ought  to  be  regarded  as  an  immoral  compact,  liesides, 
Mr.  Chairman,  this  wodiifi  inrendi  is  virtually  a  concession  by  the  United 
States  of  the  right  of  Canada  to  visit  upon  American  vessels  the  denials 
of  privilege  and  the  outrages  which  I  have  descjibed. 

Tiiis,  Mr.  (chairman,  is  the  outcome  of  the  di])lomatic  management  of 
nnr  iislicry  rights — rights  which  England  was  fonted  to  a<;knowledge 
ill  the  treaty  of  i)eace  which  followed  the  Revolutionary  war — for  the 
mauitenance  of  which  Samuel  Adams  was  willing  to  resunn^  the  war 
ot  Itidependence,  and  for  which  John  Adams  stood  like  a  rock  at  Paris 
ill  1783. 

In  addition  to  the  outrages  which  I  have  mentioned,  for  the  better 
inntcction  ol  her  fisheries  Canada  has  recourse  to  the  civilized  exj»e- 
(licnt  of  laying  a  duty  of  half  a  cent  a  pound  on  fresh  tisb,  which  is 
al>out  the  e(]uivalent  of  an  ad  valorem  duty  of  •'>(>  per  cent.  Besides, 
slic.  (xemiits  hei'  tislring  vessels  fmm  all  local  taxation,  and  from  duty 
on  iiiipoi  ted  material,  and  grants  to  her  iishing  vessels  a  bounty  of  8.j 
'HMiis  a  ton.  We,  on  the  other  hand,  allow  the  importation  of  fresh 
Canadiiin  tish  free  of  duf^',  our  fishing  vessels  are  not  exem])t  from 
lociil  t;ixation,  we  pay  them  no  bounties,  and  we  only  extend  to  them 
the  privilege  of  importing  salt  free  of  duty. 

l:]vidently  the  whole  aiia  and  intent  of  the  Dominion  trovernment.  and 
more  particularly  of  the  maritime  provinces,  viz,  New  IJrunswick,  Xova 
Bcor.i!i,  Trince  Etiward's  Island,  and  Xewfonndland,  is,  and  for  the  last 
seventy  years  has  lieen,  to  drive  American  fishermen  fioiii  the  seas  and 
to  gain  a  nu)nopoly  of  the  North  American  fisheries.  The  Dominion 
Government  is  now  striving  to  do  this  very  thing  by  denying  to  Amer- 
ican vessels  all  commei-clal  })rivileges  in  her  ports,  by  denying  them  tlie 
rights  of  humanity  accorded  to  seamen  by  the  whole  world,  and  by  dis- 
ciiiiiinations  jnotective  and  enabling  toward  Canadian  lisliing  vessels. 

Mr.  Chairnuu),  I  believe  the  remedy  for  all  these  evils  and  disaltilities 
wliii'h  afflict  our  fishermen  is  entirely  in  our  own  hands,  and  tiiat  it 
may  be  apidied  without  recourse  to  any  hostile  or  even  vengeful  ex- 
jH(lientv  Dui'inj^  the  year  1887  the  value  of  tin'  «'X|)orts  of  (ish  from 
Caiisula  to  tiie  United  States  amounted  to  $2,446,<j8;!,  and  constituted 
o7  i)er  cent,  of  her  total  expoiis  of  fish.  Almost  her  entire  exports  of 
fi<'sh  tish  were  to  tln^  United  States.  This  is  fully  exhibited  in  the  fol- 
lowing table  which  1  ha\  e  prejiared  for  the  use  of  the  committee  : 


I'ohie  of  Ihc  rri  oris  of  JJnh,  avd  produi.ls  of  the  finhcrlcit  from  the.  DoJiiiuion  of  Canada  to 
the  Ihiitbd  ijlatcH  ami  to  all  other  coiiulrits  durinfj  the  year  It^T. 


A  I'tlcles. 


Cod-lisll  : 

lr.-li,(tc 

HiillctI  dry 

\M.t  M!l|t(«ll 

VicUli'tl 

TllllU.UH  IIIkI  Mdllllllg 

M.I.  Ucivl: 

Iri'sli 

<■  iiinntl 

;.!il.-l.'<i 

liulibul,  li'tisli 


To  the 
Fiiittd 
StatoH. 


$1. 300 

3Ui»,  :m 

1,  9iU 

•jr.4 
!(!,  .;ti;; 

42:  tm 

573,  !»()8 


To  nil  ntlin 
couutiie*. 


2,125,  14S 

770 

129 

2,13:i 

419" 

83,701 


Total. 


,  524,  B.tl 

2,  7'!! 

18,  4110 

3-',  724 
C.'i7,  729 

ii,ae2 


ll 

i 


n'^ 


920  KKLATIONS    WITH    CANADA. 

Value  of  the  exjwrts  of  Uw  fmh,  and  produots  of  the  fnherivn,  do. — ConHmictl. 


Ai'ticles. 


ScaloM. 


Heiring : 

fitiah  (ir  I'lOKOn. 

picklrd  

funiKMl 

HllKllll'll 

Soa<i-li'. 

otliur  fi-ush 

l)itkle(l. 


.1 


OyKii'i's,  fresh 

Lob><t(-,vs: 

licsh     

i.-aniici!  .-.■ , 

Biiit.  clams  or  other 
Saliiiou  : 


Ircsli 


'I'o  all  ollioi'i 
couiitrijjH. 


$116. 

02, 

40, 

1, 


80, 


Finb  . 


Clllllll'll 

l)ii;kled. 


alltitlii'r  lisli  . ... 
all  othor  iii<:klr(l. 


Total 


Ml, 

33, 

4fil, 
19, 


550 

((01 

1(19 

242 

ifi 

1 

519 

tm 

Otjl 

««8 
320 


*9»,  i;:o 

118,950 


8,  l'20 


1,254 


,  040,  2r..'j 
01 

5 

40 

579,  602 

15.05ft 

50 
6,19 


Xotiil. 


*04. 9.'0 

24."),  1)10 

2;i 

100, 5t,) 

■ti:,  ilCi 
11,1.^1 

1,2!-! 

l.SOl 

.    8('.  7«2 
,  ;!79,2i:; 

:.5 
«(!.'.  4  cr. 

40i,7;is 
Id.  or,i) 


2,  )  10,  083  I    4, 063,  622        6,  5;i0,  lili', 


"Now,  tlie  ifosition  wliich  I  toke  in  this  matter  is  that  we  shall  ostnlili.sli  a 
normal  taritVou  tish  in  aecordaiieo  with  the  preponderance  of  s(Jiitiin(;iit 
in  this  country  regarding  our  customs  tarift',  a  sentiment  coutroHed  en- 
tirely by  our  own  idens  of  the  force  of  the  commercial  and  economic 
conditions  involved  in  Mie  case. 

Tlien  I  would  fram«i  a  discriminating  schedule  of  duties  on  Canadian 
fish,  to  be  ;i)>plied  in  suiih  manner  as  to  meet  each  refusal  of  commen.'ial 
priYilci>e  to  uur  vesstds  such  as  is  freely  accordiMl  by  the  United  States 
to  Canadian  tishing-vcssels  and  all  other  vessels.  Jutjiecase  oi  the 
denial  of  the  tights  ot  humanity  to  distressed  st^unen,  1  would  respoiul 
by  an  ai>solute  prohibition  of  the  in'.i>ortation  of  Canidian  tish.  I  iioid 
that  in  this  matter  the  Ijiiited  States  is  not  only  bound  to  defend  its 
own  houur  and  the  interest  of  it.^  citizens,  but  it  is  undtr  a  nu)ral  ob)i- 
gatii'ii  to  «:ivilizat.ion  to  do  so.  This  obligation  requires  that  we  shall 
])Ut  a  stoji  to  the  disgraceful  conduct  of  the  Dominion  Oovernnu'ul, 
towards  r.iir  lishcrmen,  for  it  is  conduct  wiiich  may  almost  be  charac- 
terized ;i>  l.'galized  [)ira<',y.  Give  to  our  fi.shermen  tliese  privileges,  and 
they  will  (.lieerfully  part  with  tiic  ]nivileges  of  the  Canadian  in-shoio 
tishcrit's. 

Mr.  Cliaiiiuan.  1  am  aware  of  the  fact  that,  in  terms,,  the  retaliatory 
measures  adojifed  by  the  acts  of  .June  It),  ]8S(>,  and  iVIarch  3,  1887,  aim 
at  the  cureof  the  evils  wliich  I  have  referred  to.  but,  with  all  due  respect 
to  the  gctitlemt'ii  who  fimned  those  statutory  provisions,  I  beg  leave  to 
expie.ss  ilio  oi)iiiion  tliat  they  are  too  vague  and  too  general  in  their 
expression.  For  example,  J  think  that  not  only  the  adiiiinistrativo 
otlicers  of  the  Gov^m  nuient,  but  the  courts,  would  find  it  ditfitjult  to 
attaeii  a  delinite  signitication  to  such  expression  as  "commercial  [)rivi- 
h^g<'s,"  and  also  to  the  expression  •'  unjustly  vexed  or  harassed." 

Tlieve  is  a  great  variety  of  "commercial  pri\ileges,"some of  which  we 
may  ol  right,  demand,  and  some  of  which  we  may  not.  And,  again,  there 
are  a  great  many  ways  in  which  people  may  be  "vexed  or  harassed." 
Some  are  serious,  and  ofhers  rnendy  in  the  nature  of  frictional  resist- 
ances. P.esidcs,  in  view  •■f  the  importance  of  our  market  to  the  Cana 
dians  aud  of  our  ports  to  their  vessels— lor,  remember,  the  most  valuable 


RELATIONS    WITH    CANADA. 


921 


of  tlio  mackerel  and  cod-fisberies  are  off  our  own  coast,  and  iio^  off  the 
const  of  tlie  British  i)rovin(',es — I  believe  tliat  wo  can  safely  coniineour 
iftlaliutory  measures  to  tlie  tishiny;  business  and  to  the  sea-y()iii{»'  ves- 
sels of  C:iiiada,  and  that  it  is  unnecessi'iy  to  have  retjoursc  to  the  i)ro- 
liihiiioii  of  all  »'xi»orts  from  Canada,  as  provided  by  the  act  of  March  3, 
1887,  and  much  more  do  I  think  it  is  unnecessary  to  have  recourse  to 
ilio  extreme  measure  of  the  suspension  of  the  United  States  and  Cana- 
dian tninsil  trade,  as  rcconimeiided  by  Tresideut  Cleveland  in  his  mes- 
sa<ieorAuKUst2;i,  1888. 

Of  all  tilings,  let  us  avoid  fishery  diplomao5\  I  would  abrogate  every 
treaty  itrovision  relative  to  the  lisherics  and  trust  the  .settlement  of  the 
whole  t^iibject  to  the  chances  of  reciprocal  legislation.  In  this  matter 
tlie  iulv;intage  is  very  largely  on  our  side  and  we  can  use  it  wisely, 
firmly,  and  even  temperately,  as  I  believe,  so  as  to  cure  all  the  evils  of 
wliicii  our  Hsheinuui  ju^'ily  complain.  All  we  have  to  do  is  to  ado[)t 
statniory  j»rovisions  specifically  applicable  to  the  several  evils  which  1 
liavo  endeavored  to  describe. 

President  Harrison  in  his  recent  message  has  stated  that  our  fishery 
business  has  gone  on  during  the  last  season  with  less  friction  than 
usual,  but  with  all  due  resjiectfor  the  President,  and  as  a  friend  of  his 
adiiiiiiistration,  1  think  he  is  laboring  under  a  misconception  of  the  real 
status  of  the  case.  President  Babson,of  the  National  Fishery  Associ- 
ation, in  a  letter  dated  December  5,  1880,  informs  me  that  the  quiet  of 
the  present  season  is  simidy  due  to  the  fact  that  the  fishermen  have 
ccnie  to  the  conclusion  that  they  can  get  no  ]>rotection  whatever  against 
CanadiH;!  wrong  and  oi)pression  from  their  own  Government,  and  have 
tlierefore  <piietly  submitted  t<i  whatever  Canada  tnay  choose  to  demand 
or  refnse.  That  is  the  real  status  of  the  case,  and  it  is  one  which  calls 
for  such  specitic  and  certaiu  measures  of  relief  as  can  at  once  be  set  in 
motion. 


CAxNiDtAN    DISCRIMINATION    IN     THE     MATTER 

CLEARANCE   FEES. 


OF     ENTRANCE     AND 


Notwithstanding  the  fact  that,  under  our  existing  relations  of  uuiri- 
tinie  n'cijjrocity,  Canadian  vessels,  are  allowed  to  enter  at  ports  of  the 
T'niied  States  upon  the  same  terms  as  to  toiniage,  duty,  and  entrance 
anil  clearance  fees  as  a)e  charged  American  vessels,  Canada  charges 
American  vessels  an  entrance  fee  of  oO  cents  and  a  clearance  fee  of 
r>0  cents,  making  $1  for  every  visit  to  a  Canadian  port,  whereas  no 
cnlraiu'e  or  clearance  fee  whatever  is  imposed  upon  any  Canadian  ves- 
sel entering  a  ('ana<liini  port  from  the  United  States.  This  is  compara- 
tively a  small  matter,  but  it  serves  to  illustrate  the  general  fact  that  all 
along  the  line,  from  the  baid<s  of  Newfoundland  to  the  island  of  Van- 
couver, the  Canadian  (Tovernmeut  leaves  no  chance  of  encroachment 
iip'^i'  American  commerce  and  no  loop  hole  of  advantage  for  Camidian 
>essels  or  Canadian  trade  which  it  does  not  improve  by  nn  unfair  dis- 
criniination  of  some  sort  in  favor  of  Cauadiau  interests. 


CANADIAN  VinT,AT10N  0¥  THE    TlillJM.S   OF  THE  TREATY  OF  WASHING- 
TON  AND   OF   THE    OHLIUATIONS  OF   THE    "TRANSIT    TRADE." 

\  flagrant  and  most  absurd  violation  of  a  treaty  stii)ulation  between 
the  United  States  ami  Cicat  Britain  was  brought  to  the  attention  of 
tli(!  Ibmse  of  liopresentatives  on  the  1th  of  January,  188S,  in  the  tbrm 
<)f  a  resolution  submittet!  by  !he  Hon.  Nelson  Dingley,  Jr.,  of  Maine. 
During  the  throe  preceding  years,  through  the  device  of  au  "order  ju 


922 


RELATIONS   WITH   CANADA. 


council,"  a  rebate  of  18  cents  per  ton  liad  been  allowed  out  of  tlu*  totiil 
toll  of  20  cents  per  ton  on  {jr.ain  of  all  8ortfl  passing;-  throu^ii  the  Wellaiid 
and  ISt.  Lawrence  Canals,  if  .shipped  to  iMontrciil.  Tln.s  constitutes  a 
premium  of  18  cents  a  ton  olfeied  by  the  (\in;idijin  (lovenmicut  in 
favor  of  the  diversion  <if  American  connnerce  from  American  sea  ports 
and  Anericaii  lrinis[)oitation  lines.  An  otlicer  of  th«>  roveinie  depart- 
ment of  Oan:ida  has  iiinoc(;nlly  confessed  that  "  the  object  of  the  Do- 
minion Governmi^  it  in  jtromidi^^ating-  this  order  was  toencourrij^e  trade 
over  the  ^t.  Lawrence  rout<?  instead  of  allowing  it  to  go  to  American 
ports." 

On  the  5th  of  Janunry,  18SS,  Mr.  Ding^ley  showed  ihiit  this  discrinii- 
nation  Wiis  clearly  in  violation  of  Article  XXA^fl  of  the  Treaty  of  Wash- 
ington. It  also  constitutes  a  niosl  tiagrant;  and  unuiifest  violation  of 
the  recijirocal  rehitions  under  which  the  ••  transit  trade"  exists.  TIio 
life  of  tiiat  arrangement  subsists  in  an  entire  abstinence  from  any  sort 
of  discrimination  in  favor  of  the  cars,  the  vessels,  or  the  ports  of  fitliw 
country.  When  the  two  countries  shall  attem])t  to  vie  witli  each  etiiev 
by  discriminations  in  l'avo»- of  their  own  cars,  or  vessels,  or  ports,  tlio 
whole  transit  trade   wit^  'ts  manifold  conditions  of  mutual  iteiielit, 

will  be  wiped  out. 

It  was  hoped  that  the  iioi.uiion  Government  would  have  recognized 
the  expediency,  il  iiof  the.justice,  of  receding  from  this  manifest  Urcacli 
of  treaty  obligat'on,  bn,  ili' :  has  '"  *^  been  <lone.  On  the-Oth  of  Ai'ril, 
1888,  the  oiiensive  disciimii-Ming  oi'<<er  Tas  renewed.  I'he  Doininioii 
Govornm<'nt  seemed  to  be  alarmed  and  delayed  the  order  about  aniDutli, 
until  the  absorbing  issues  of  an  a]>i)roaching  Presidential  campaign  had 
called  the  attention  of  Congress  and  the  country  away  from  Canada. 
But  again,  on  the  18th  of  Alarch.  18.S1),  the  discriminating  order  was  is- 
sued by  an  order  in  council  for  the  season  of  navigation  of  188',). 

Last  year  there  was  no  awakened  public  sentiment  to  be  feared  in 
this  country  and  the  order  was  issue<l  at  an  unusiuvlly  early  date.  This 
year  the  Dominion  (Jovernment  grew  bokler  and  issued  the  oiVensive 
order  for  the  season  of  1890  on  the  2()th  day  of  February  last.  It  is  ob- 
served that  this  violation  of  the  jirovi.sions  of  the  treaty  of  Washinglou 
and  of  the  conditions  under  which  the  transit  trade  exists  is  not  i-ahu- 
mitted  through  an  act  of  Parliament,  but  by  the  sly  and  facile  exi)eill- 
eut  of  an  annual  "order  in  council,'' a  met  hod  of  wrong-doing  for  which 
Charles  1,  King  of  l^^nglaud,  was  adjudgetl  a  tyrant,  and  for  w  hicli  lie 
at  once  lost  his  erowii  ami  head. 

In  reo|)on<liiigto  this  indeiensible<liscrimiiiation  against  the  Amerioaii 
commerce  the  (iovernment  of  the  United  States  oiiglit  at  once  to  im- 
pose a  tonnage  tax  of  at  least  10  cents  per  ton  on  the  gross  tonnage  of 
all  Canadian  vessels  passing  through  the  canal  at  Sault  Ste.  Jlaiie, 
whi(!h  connects  the  navigation  ot  Ijake  Superior  with  that  of  Lake 
Huron.  This  canal,  with  its  lock  ol5  feet  long  and  80  feet  wide,  was 
construclt'd  at  a  cost  of  aboiii:  .*$  1 ,000,000,  and  is  now  owne<l  and  oper-, 
ated  by  the  Government  of  the  United  States.  Both  American  and 
Canadian  vessels  are  all  iwed  to  pass  through  Sault  Ste.  Marie  (3anal 
free  of  tolls.  That  the  United  States  has  full  p»twer  to  order  such  dis- 
eriniin  iting  tax  ujK)!!  Canadian  vessels  will  be  r<  adily  seen  by  examin- 
ing Article  XK\'ll  of  the  Treaty  of  Washingi on,  concluded  July  4, 
1871.  At  that  time  the  canal  belonged  to  the  State  of  Michigan,  and  it 
was  not  transferred  to  th<»  United  Stfttes  until -lunc  .').  188L 

Theie  an*  also  other  ai»i)roi)riate  and  effective  means  of  retaliation 
upon  Canada  for  this  unjust  di.scriniination  against  American  interests, 
which  will  readily  suggest  themselves  to  the  legislative  mind. 


REI-ATIONS    Wrni   CANADA. 


023 


TUE  CANADIAN  REFUSAL  TO  REOrPROrATE  IN  THE  MATTER  or  AIDINO 

VESSELS  IN    DlSTKli;S«. 

Oil  tlio  4 til  of  Fo.bruiiiy,  1888,  tlic  late  Hon.  Newton  W.  Nutting-,  of 
New  Voili,  l»roii,niir,  to  tlie  atleiitioji  of  the  Floiise  of  ivO[»re.setitativo.s 
;lif  tact  that  llic  Doininioii  (toveninn'iit  refiisL'.s  to  accept  tlie  otter  niado 
by  the  IJiiitcd  States  by  act  ofJiine  1!),  1S78,  to  allow  Canadian  wreck- 
iiifT  vessels  and  macliiiicry  to  assist  CUinadiau  vessels  wrecked  in  Ameri- 
ciiii  waters,  ])rovided  a  Hke  privile^i^e  is  ext<U]ded  to  American  wrecking 
vosyels  and  niai'liinery  in  Canadian  wuters. 

This  inatt(>r  has  time  and  a,i;aiii  hecii  brought  to  the  attention  of  the 
Dominion  (Toveniineiit,  and  the  subject  has  several  times  been  «liscnssed 
in  J'arliainent,  but  the  political  infliK^K^e  of  two  or  three  Canadian 
wrccluMf!:  companies  has  been  stioiig  enough  to  i)revent  the  Dominion 
(iovcrmuent  iVoni  acce})tinj,'  the  terms  of  our  protfered  reciprocity, 
altlioiij^h  such  action  has  already  resiilte<l  in  loss  o\'  life.  But  this  re- 
fusal to  i'cci})rocate  in  a  matter  which  a))peals  to  the  humane  impulses 
(if  mankind  is  perfectly  in  ke('j>iu,i:' with  the  refusal  of  the  (!ana<lian 
Govcnuncut  To  allow  American  lishinj?  vessels  the  common  jirivilejteof 
Bcekinii  r('fu<;'e  in  Ucr  ports  in  time  of  storui,  and  for  replenishment  and 
iieci'ssary  repairs. 


AN    ATTEMPTED    VIOLATION    OF    THE    REOIPROCAL    OIIAIIACTER    OF 

THE  TRANSIT   TRADE. 

The  j,'Tas])inj>-  and  unfriendly  dispusition  of  the  Canadian  Government 
toward  the  ITnited  States  was  srrikiiij»iy  illustrated  by  the  attem])ted 
refusal  of  the  Canadian  authorities  to  allow  <j;rain  raised  in  the  I'rov- 
iiuH'  of  I\lanitoba  to  be  shipped  "  in  bond  "  from  one  point  in  Canada  to 
another  |)oint  in  ('anada  over  Americnin  railroads.  This  took  place 
upon  the  c()ni|i1etion  of  the  Canadian  Paeitic,  early  in  the  year  1880. 

The  moveuient  of  several  million  bushels  of  grain  was  thus  for  a  time 
rf'strained.  This  was  an  o])en  and  Ha, Lira nt  violation  of  the  privileges 
or  the  "transit  trade,"  under  which  re(;ii)ro(;al  arrangement  the  rail- 
roads ot  Canada  have  profited  ten  times  as  uiucU  as  the  railroads  of 
the  rnited  States.  The  ''transit  trade"  has  also  been  of  enormous 
ad\ant,age  to  the  commercial  and  industral  interests  of  Canada,  The 
refusal  of  the  Dominion  (iovernment  to  allow  grain  to  be  transjiorted 
••  in  bond  '*  over  American  railroads  was  not  openly  announced,  but  ifc 
was  atlempled  surri']»tiliously. 

The  Ottawa  authorities  declared  that  no  instructions  have  been  issued 
to  the  oilicials  in  Manitoba  to  prevent  the  tratlic,  and  the  customs 
ollicials  in  Manit«)l)a  d<'clared  that  no  instructions  had  been  issued  to 
them  whereby  tliey  could  issue  the  necessary  certificates  allowing  the 
nioveinent  of  grain  from  one  point  in  Canada  to  another  point  in  Can- 
ada over  an  Aniericaji  lino.  Tlie  treaty  of  Washington,  concluded 
May  8,  1871,  bore  the  first  marks  of  this  scheme  of  refusing  to  be  bound 
In  the  reeii)rocal  conditions  of  the  transit  trade.  The  w<mls  •'  to  otlier 
places  in  the  United  fc^tates,"  near  the  end  of  the  second  paragraph  of 
Article  XXIX,  grant  to  Canadian  railroads  the  right  to  convey  goods 
froiu  one  ])oint  in  the  United  States  to  another  point  iu  the  United 
Siutca  without-,  payment  of  duty,  whereas  there  are  no  corresponding 
Mords  in  the  first  paragrai)h  of  the  article  referred  to  which  grant  a 
reciprocal  privilege  to  the  railroads  of  this  country. 

The  ('anadian  I'aeitlc.seeuied  to  be  trying  the  experiment  of  taking 
advantage  of  this  ouiissiou,  which  was  either  the  result  of  a  blunder 


924 


RELATIONS   WITH   CANADA. 


or  of  a  fraud.  But  the  n'ltheriii};  storm  of  in(lij,'nuti«)ii  convincctl  the 
O.uiadiiuia  tlmt  the  \\liol(>  iiansit  trade  iiii.'^ht  bo.  endanu'ciod  by  tlu'ir 
refusal  to  obs<'rve  tlie  ohiijiatioius  of  its  reciprocal  characU'r  aiul  tliev 
})riiikMitly  wJtlidrew  their  t)i)|)o.siti«)ii. 

Tliis  case  cU'arly  i»r()v<'.s  (hat  the  Doininioii  (^loveriiinent  canii'smi 
frieiidshij)  into  its  trade  ndatioiia  witli  the  I,  Jiited  fc>tates. 


1      (■ 


CANADIAN    IJEFITSAL   'J'O   KKKP  FAITI."    WITH    THE   TTNlTEl)   STATES  IN 
Tit  10    IMATTKU    OF  A    PKoroSlTION    .MADE    BY    THE    DOMINION'  GOV- 
•  EKiNMEKT. 

Mr.  Chairman,  I  sliall  offer  you  but  one  more  iiiatauce  of  Caiuidiun 
encroachment  ami  uufairiieNs  toward  the  LTnited  States. 

On  the  L'd  ot'Ai)ril,  1SSS,  the  Hon.  Charles  8.  Baker  l»rou,i>ht  to  Hid 
attention  of  the  House  of  fJ(>})resentatives  perluips  the  most  flajfiaiitof 
all  the  recent  breaches  of  ;;(>od  faitli  toward  thc^  United  Stat«'s  by  (lift 
Donunion  of  Canada.  The  Canadian  act  of  Parliament  of  J\Iay  JT),  1S7!I, 
])rovided  that  a  large  immber  of  s])eciiied  afjriculturaJ  ami  othei'  pioil 
nets  mij^ht  be  admitted  into  (Canada  from  the  United  States  frci'  of 
duty  whenever  the  Uuited  Stat«'S  should  admit  similar  artich  s  t'roiu 
Canada  tree  of  duty.  Tins  olfer  was  accepted  by  our  act  of  iMarcli  3, 
1883,  with  respect  to  many  of  the  articles  nieiitioneil.  But  ^or  five  yeaivs 
Canada  failed  to  jylace  such  articles  upon  her  free  list.  Comi)laiiit  huv- 
iug  been  matU^.  through  the  Hon.  Charles  S.  Baker  by  parties  iiijiiri(M\sly 
aliected,  Secretary  Bayard  luon^dit  the  matter  in  an  unoHicial  way  to 
the  attention  of  the  (.'anadian  Government  early  in  March,  but  the  iniii 
ister  of  customs  evaded  the  whole  thin''  by  asserting  that  the  Canadian 
Goveiument  wasnotobliged  to  observe  the  reciprocity  contracted  iii>on 
its  own  motion  nntil  every  one  of  the  articles  enumerated  l>y  the  C.uia 
dial)  act  of  187!)  was  made  free  by  the  United  States.  But  this  wa,^ 
manili'stly  aljsurd,  as  the  act  referred  to  provides  that '' anii  and  all  ot 
the  following  articles,  etc.,  may  be  iin])orted  into  Canada  free  of  dnty." 

On  the  2Srli  of  March  Sir  L'eter  Mitchell,  of  New  lirnnswick,  cidled 
the  i)rime  minister  sharply  to  account  on  the  floor  of  the  House  of  Com- 
mons for  his  transparent  act  of  bad  faith,  to  which  theimpeiiousk;ul.T 
sullenly  replied  that  the  act  was  permissive  and  not  mandatory,  its 
language  being  "may  be  imported,"  and  that  the  Canadian  Govermeiit 
was  more  concerned  in  protecting  the  interest  of  Canada  than  those  of 
the  United  States,  The  shallowness  of  this  defense  was  readily  ex- 
posed. But  the  resolution  offertMl  by  Mr.  Baker  in  the  House  of  Rep- 
resentatives on  the  2d  of  April  brought  the  Canadian  chitdtain  to  terms 

Two  days  afterwards,  viz,  on  the  morning  of  the  4tli  of  April,  Sir 
Charlefe  Tapper,  minister  of  Ihiance,  announced  on  the  tioor  of  the 
House  iif  Commons  tliat,  at  the  iuhtance  id' Lord  Salisbury,  ])rime  min- 
ister ol  (Ireat  Britain,  the  articles  made  free  by  the  act  ot^  Congress  of 
March  .">,  1883,  had  been  placed  upon  the  free  list,  and  at  the  same  time 
Sir  Charles  read  a  telegram  which  he  had  sent  the  previous  day  (April 
3)  to  Sir  Lionel  West  at  Washington  informing  him  that  on  receii)t  ofa 
copy  of  his  (Sir  Lionel's)  dispatch  to  Lord  Salisbur,^  the  articles  liiid 
been  placed  on  the  free.  list.  There  ajtpears  to  have  been  some  remark- 
ably alert  diplomacy  between  Wasldngton,  London,  and  Ottawa  betweea 
the  introduction  of  Mr.  Baker  s  n^solution  in  the  llouso  of  Kepresenta- 
tives  on  the  2d,  and  Sir  Charh*!--  Tupper's  announcement  in  the  (Cana- 
dian Parliament  on  the  4th.  But  within  three  weeks  Sir  Charles  Tap- 
l»er.  on  bfhaKOf  the  Canadian  (Joveriimen!,  Mibinitted  to  the  "  Coiii- 
mons ''  a  bill  which  so  construed  the  words  "any  or  all"  in  their  act  of 


^'-''^JV? 


^^^mmmm*. 


HiVm 


RELATIONS  ^   ^TH  CANADA. 


925 


1S7!»,  thai  tliP  Canadian  Covornment  would  in  the  fntnre  be  able  to 
si'lcft  Croiu  any  addition.s  which  may  be  made  to  oui  Tree  list  such  j;oods 
nii!\  ;is  it  may  (ihoosc  to  make  free.  This  clearly  iiidieatcs  the  shrewd- 
ness Willi  which  the  Donjinion  (fovcrnmeiit  manages  it«  commercial  inter- 
course  with  the  United  States. 


tONCr.l'UINO    KKMARKS    IN     T{KOAItl>    TO    KISHKUY    OUTRACtES,   UNJUST    DISCKIMINA- 
TKjNJj,    AND    \'l(ir,AriONS   OK  TKKATY. 

I  have  tluw  submitted  to  you  a  .somewhat  caret'nlly  prejjared  series 
ol  «t;iU'inent8  in  re{j;ard  to  the  conduct  of  Canada  toward  the  United 
States.  The  Uritish  Government  can  not  and'  dare  not  attempt  to  re- 
j)rt's.s  any  of  these  wrongs,  and  from  I'rudential  motives  refrains  even 
troiii  coiidemninp;  them.  Un  the  other  hand,  the  United  IStates  holds  a 
I'oiitiollin};  power  over  the  whole  matter  of  our  Canadian  relatio!ishii)s 
iui''(iiuit(  to  suppress  every  outrage  and  to  prevent  every  encroachment 
ii])nn  Aniericitn  interests. 

Do  not  these  considerations  clearly  prove  the  folly  of  any  further  at- 
tiinpt  to  cure  su(?h  evils  by  treaty  '^  Appropriate  legislation  by  Con- 
{;Tt'Hs,  (»r|^mi)ted  not  l)y  any  hostile  or  even  vengeful  feelings,  will,  I 
hclicvc.  be  foun<l  sut1i<'ient  for  the  cure  of  all  the  evils  of  which  we  now 
jiisily  complain.  Vt  the  s.ime  tinu*  such  action  will  rdicn^e  the  British 
Goveriniient  Iron)  .i  vexatious  duty  over  which  it  has  no  sort  of  control, 
iiiid  in  regard  to  which  tlie^people  of  Great  Britain  have  no  direct  in- 
terest whate:ver.  -  ■         ,  .: 

THE  ALASKA  SEAL  FISHERIES. 


I  shall  not  liere  attempt  to  discuss  the  rights  of  the  United  States  in 
tlic  Alaska  seal  lisheries,  raising  irom  the  question  as  to  whether  Behr- 
iiig-  Sea  should  or  should  not  be  regarded  as  a  "  closed  sea,"  but  will 
merely  allude  to  an  economic  and  commercial  aspect  of  the  case  which 
to  my  nn"nt!  is  con<;lusive  of  the  whole  matter.  The  fur  seals  whicli  fre- 
(|iieiit  the  Pribilof  bdands  for  the  purpose  of  breeding  would  soon  be 
exterminated  if  the  right  to  calch  them  in  the  wattirs  of  the  Behiing 
8ea  siiould  be  admitted.  That  has  been  demonstrated  by  actual  ex- 
])e)ience  in  other  i)arts  of  the  world. 

A  continuous  supi)ly  of  seal  skins  to  the  markets  of  the  world  can 
only  be  secured  by  killing  a  certain  proportion  of  the  males  after  they 
liiive  reached  the  Pribilof  Islands,  and  sparing  the  females.  It  is 
cleaily  in  eviden»'-e  that  the  seals  shot  in  the  waters  of  Bchiing  Sea  are 
clii<'!ly  females  and  that  "only  one  in  seven  on  an  average  is  secured." 
All  the  rest  sink.     This  is  manifestly  the  extermination  of  the  species. 

Now,  the  very  fact  that  the  seal  make  theirhabitat  on  American  soil, 
V  liile  it  is  possil)leto  secure  asuppl>  of  skins  without  reducing  the  size 
ot  the  herd,  set'uis  to  impose  upon  our  Government  a  duty  which  shall 
t^idfer  no  interterance  from  any  other  country.  We  owe  it  to  the  whole 
Morld  to  proteijt  this  seal-skin  industry.  To  allow  foreigners  or  our  own 
citizens  to  captuie  seals  in  the  open  sea,  would  be  about  as  much  an 
ofiiMise  against  mankind  generally  as  to  authorize  our  fishermen  on  the 
hiinks  of  IS'ewfoundland  to  use  dynamite  or  some  other  violent  ex|do- 
«i\(i  for  destroynig  fish,  of  which  not  one  in  ahuiuired  could  be  secured. 

While  the  legal  ma.xim  nic  ufere  tuo  nt  alienum  nou  laedas  uvAy  not  be 
applicable  as  a  Iul{^  of  international  law  upon  this  subject,  yet  it  does 
eunvcy  a  suggestion  which  appeals  to  the  ))id)lic  conscience,  and  the 
iseiise  of  national  duty,  iu  the  formulation  of  a  rule  which  shall  de- 


920 


RETATTONS  WITH   CANADA. 


t(^niiine  tlio  status  of  this  qnostioti  (or  iill  hiin'.  [  think  tliatwc  need 
li;iv(^  roroinsc  to  no  otluM-  ('(»H!siiloriiti<)ii  tor  tlii'  Jnstiriciitioii  nt  tlni 
policy  which  ^hv  ihutvd  iStiitos  Govormnent  hii8  thua  iar  pursued iu 
regard  to  the  Ahiska  seal  ti.sherios. 

COMMERCIAL   UNION. 

Mr.  Cliairmnn,  the  statements  which  T  have  already  preaenrod  to 
you  have  an  important  bearing  ni)(Mi  the  question  as  to  the  pnutticu- 
billty  of  the  sclienie  of  "coiiunorcial  union"  of  wliich  we  have  hcanlso 
much  (lurmg  the  last  two  years. 

It  scoius  to  me  to  go  without  saying  that  those  striking  diversities  of 
governmciitfil  function  and  iuconi])atii)ilities  of  interest  hcreitdu't'ovc  dc- 
scril)ed,and  llic  array  of  ciicroiichmcnts  upon  the  i)art  of  the  Doniinioii 
Government,  to  wlii(di  1  iiave  alludcct,  i)h>nc  repel  anythijig  in  the  nat- 
ure of  a  copartnership  a.rrangement  toucliing  the  Joint  maiiageiiiciit  of 
the  cnstoiuH  revenues  of  the  two  countries.  Under  existing  cininn 
stances,  1  can  iunigine  m>  jiolitical  soleeism  more  striking  than  would 
ho  [)resente(l  by  such  an  anangcment.  Isevertheless  a  ])ropositit)ii  oi 
this  sort,  denondnatcd  "commercial  union,"  has  c<munande(i  a  consid- 
siderable  share  of  public  attention  during  the  last  two  years,  and  its 
assumed  nieiits  have  broi  ght  it  to  tin-  attention  of  your  committi'c. 

This  scheme  of  "conimereial  union  "iuiplies  the  abolition  of  customs 
duties  on  goods  of  all  i\inds  in  tlie<'onduct  of  trade  between  the  I'nited 
(States  anil  (-anada.  and  the  establishment  of  a  common  external  taritl 
on  imijorts  from  all  other  countries. 

Commercial  uni(ui  lias  liad  as  its  chief  advocate  a  gentleman  of  con- 
spicuous ability,  Mr.  iuastns  Wima:i,  a  Canadian  by  birth,  and  still  a 
(.Canadian  and  subject  of  Great  Britain.  Although  Mr.  Winum  has  tor 
the  last  twenty-eight  years  beiMi  actively  engaged  in  commercial  pur- 
suits in  New  York  City,  he  has  advocated  the  cause  of  coiniuercial 
union  with  a  degree  of  for<-e,  persistency,  and  tact,  and  with  a  manifos- 
tation  of  eloquence  wliicli  would  be  creditable  to  one  wiio  has  devoted 
the  greater  y)art  of  his  adult  life  to  tlu;  consideration  of  econoniic  iiiul 
])oiiti.-al  prol)lemsand  to  the  active  experitnices  of  po]iti(;al  endea\or. 
1  have  no  reason  to  doubt  tliat  Mr.  Wiman  has  engaged  in  this  work  in 
all  sinctirity  and  with  perfect  candor.  an«l  yet  1  <Jiffer  from  him  radi- 
cally as  to  the  practicability  of  the  objects  whicdi  he  si-eks  to  accom- 
plish. In  his  efforts  to  propagate  the  cause  of  coinmercdal  union  Mr, 
Wimaii  has  ignored  four  most  important  considerations,  each  one  of 
which  is,  I  think,  vital  to  the  question  as  to  the  practicability  ol'  his 
scheme.    These  are : 

First.  The  character  of  the  Donnin'(Ui  Government  as  an  owner, 
manager,  and  promoter  of  transportation  lines  for  political  and  comnior- 
cial  objects ; 

Second.  The  manifestations  of  unfriendliness  toward  the  Unilcd 
States  by  the  present  administration  of  tlie  Dominion  Government  and 
of  a  disposition  to  violate  treaty  8ti[>ulations  and  to  encroach  upon 
American  rights  and  interests; 

Third.  The  diiiiculties  of  a  tiscal  nature  involved  in  the  question; 
and 

Tuurth.  The  difficulties  of  an  adminifstrative  character  wliich  would 
a'^tend  the  practical  conduct  of  such  a  scheme. 

All  this  ]Mr.  ^Viman  lias  carefully  avoided.  He  has,  however,  been 
adroit  in  his  methods.  At  the  very  beginning  he  adopted  the  Ciceron- 
ian policy  of  liist  placing  himself  on  good   terms  with  his  auditors  in 


tii 

Mk 

RELATIONS    WITH   CANADA. 


927 


Ca)i;i<li»,  and  tlio  stops  wliirli  lie  fook  in  this  diroction  scrv*'  to  tliiow 
Ij^^'lit  upon  tlie  rcul  n  t'lits  of  hJ8  sciiiMiic.  Wv.  liii.s  nwu  lit  to  i)iocliiiiii 
Ills  devotion  to  nionnrciiicul  iiistitntions  as  rxj-nipliruMl  in  tiic  (lovfjn- 
imiil  ol'  Canada,  and  liis  liiiii  jdl«'^ian<;c'  to  nritisii  i-onnccrtioii.  and  he 
followod  this  up  with  tlie  declaration  that  "  conMnerdal  nriion"do('S 
1101  in  Mm'  remotest  degn'e  s(|uiiit  at  annexation  to  the  United  States. 
Botii  lie  and  iSir  Kiehai'd  ("arcvvii;  't  d(!i)recato  any  such  inovciniMil.  I 
will  present  two  or  three  of  Mr.  Winian'Hexpression.s  upon  these  points, 
astlity  serve  also  to  irulieate  the  totje  of  publicstntiment  <d' Can;i<ia  in 
lejiaid  to  matters  of  imijortan^e  bearin;^'  u[)on  our  ("amnlian  relation- 
siiips.    Said  he: 

TlioMi  who  aro  ac«inaiiit»'(l,  bowovor,  with  tlio  piil)lic  sentiment  in  Caiiadii  know 
t)i;,f  loyalty  to  Tirilish  inshtiitioiis  permeiitr'N  tlie  whole  country  and  tiiat  with 
iiioflicr'.s  milk  haw  lit'cii  diiink  in  tlio  lov«!  for  the*  mother  land;  lovr  Cor  the  j^ood 
Qiin-n  who  I'.iis  inh'd  thcui  ho  wIhcIv  for  half  a  eenliiry.  and  pride  in  all  the  ^;lory  of 
hiinsh  connection;  liclel'in  Hiilish  inowess,  antl  faiili  in  tlie  Urilinh  Knipire. 

Ill  rei'errinfj  to  the  subject  of  annexation,  Mr.  Winian  deehired  that 
acaiMlithite  ibr  I'iirliainent  win*  slioidd  to-tlay  oiler  himself  for  election 
on  tlie  annexation  i>latform  "  wotdd  be  iu;cused  of  the  rankest  treason." 

Jri  various  parts  of  liis  somewhat  voluminous  Kj)eeches  and  wi'itin;;s 
Mr.  U'iman  exi)rvssed  his  Ki'i^nter  atbniration  for  the  ^'overnmenlal 
iiiKfiftitions  of  (Janathi  tlnm  for  those  of  the  United  Statcis.  In  view  of 
the  iiH'ontroviMtible  fiict  that  the  Dominion  (ioveniment  is  a  mere  con- 
federacy, the  acts  of  which  have  time  and  a^ain  In'eu  ruillitied  by  the 
jwovinces,  iind  that  it  may  be  broken  up  by  lawfid  secession,  and  that 
the  executive  power  of  the  Dominion  dominates  the  legislative,  Mr. 
Wiman's  remarks  as  to  the  superiority  of  the  Canadian  Government  to 
tliiit  of  the  United  States  ntay  well  be  reijarded  on  this  side  of  the  na- 
tional boundary  line,  as  merely  ih(-torn'al  ex[tressions. 

Mr.  Wiuian  declared  his  "conviction  that  nothinjjf  will  contribute  in  a 
greater  decree  to  a  perpetuiition  of  Ibitish  connection  than  a  close 
(omaiercial  alliance  l»y  (Jaiuida  with  the  United  States."  Tiiis  he  ex- 
plains by  statino  that  the  average  duty  ou  imports  int<»  the  United 
States  is  about  10  y)er  cent.  hi;2;her  than  that  on  imports  iiilo  Caiuida, 
and  that  if  the  United  Stiites  should  lower  her  rate  a  i)er  cent,  and  Can- 
ada correspondingly  raise  Iter  rate,  the  result  to  Great  Britain  would 
b(  ujx'silive  tidvantage,  for  the  reason  that  the  lowering  of  the  <liities 
in  the  United  States  woidd  cause  a  largely  iiu^reased  importation  of 
Biitish  goods  into  thiscountry,  and  thatsiich  increase  would  very  tnuch 
exceed  the  falling  oil"  ill  the  imports  of  British  goods  into  Canathi  in 
coiisetiuence  of  the  abolition  of  all  duties  by  Canadii  on  merchandise  from 
the  Uinted  States.  Thus,  f^jigland  woidd  be  led  to  siidle  uimn  "com- 
mercial union."  The  correctness  of  this  i)arlicular  view  of  the  case  is, 
jterhaps,  beyond  qiu'stion,  but  I  would  remark  that  it  involves  cvu,  .is? 
(■rations  which  imports  very  much  more  to  the  people  of  the  Uiv, ''^ 
States  than  their  entire  trade  with  Canada. 

Mr.  Wimau  also  maintained  that  a  failure  to  adopt  "commercial 
union  "  would  uiiturally  tend  to  drive  the  people  of  Canada  toward  an- 
no \atiou  to  the  Uiiifed  States.  From  all  1  can  gather  it  appears  to  me 
that  he  is  conect  u[)on  this  ])oiut. 

In  the  effort  to  commend  his  scheme  to  the  favor  of  his  fellow  coun- 
trymen, Mr.  VViman  employed  language  which  seemetl  to  arouse  the  sus- 
j>i«'ion  that  from  his  ])ersoual  experiences  he  has  ascertained  the  loca- 
tion of  the  Blarney  Stone.     Said  he: 

Lower  Canada  is  the  natnrul  scat  of  the  manhood  of  America.  Quebec  to-day 
Khotiid  he  sittie.^j;-  at  the  seat  of  tlie  ciiBtom  of  the  world.  *  »  »  Ouo  ataggera 
at  the  thought  of  the  euormous  area  controlled  by  Quebec  and  Montreal, 


!  t 


028 


RELATIONS   WITH   TANADA. 


Tho.  nsHtiinptiiin  t1r.it  (foiiiinerciiil  union  ini<>]if  iiini  tlii^  Kr«'at<>aKt  uiid 
west  ninciit  ol  tin*  (■uiiiiiicic*^  of  tin*  United  Stittcs  to  tlM>  St.  I-uwienwi 
Kivrr  ronfi!  docs  not,  of  conrwc,  coninM-nd  llio  sflHuu' to  the  fjivoi-oi' 
till'  citit's  of  Now  York  mid  Ho.stoii.  lint  no  <liinjjt'i'  of  tlnit  sort  is  iin. 
miiient,  for  the  reason  that  niuh-r  tho  i»iivilt'},M'8  of  the  transit  iiadj. 
tli(>  iniiiortatinn  ain!  cxportatinn  of  nKMchandiso  thron<,di  .Monticiiland 
QiU'luT  is  today  a.s  frri'  to  the  peitph'  of  thi'  TnitiMl  States  as  it  is 
tliroii^di  liostoii  and  Now  York.  Coninn'Tcial  union  oonid  add  iiotliin^ 
to  iliat.  The  forciuii  conirnoroo  of  Montroal  and  ((liioboc  and  of  New 
Yorii  and  Koston  duiinj^  tlio  year  I1S88  was  as  folh>ws: 


Por««. 


Iin]ioiU. 


Kxportd. 


PortH. 


Iniporls. 


EzporU. 


New  York ,.l$470,42r  774  ♦301,480,784      MontriMvl i  »42,  ■.•4.';. 409  '  f:7,202  174 

Boston i    da.WC,  <7»*  I    6!i,4f>2,6(M   ;  tjuobtiO 4,044,9:13  1      8,;)o7,427 


m\ 


There  uro  certain  general  facts  which  properly  acooiii]»any  this  table 
viz,  first,  the  fact  Ihal  the  forei^jn  conimoroo  of  Montreal  and  (^iielMC,  ; 
ehietly  (,'anadiaii  trade;  second,  the  fact  that  the  transj»ortatiou  lines 
via  New  York  and  Boston  are  in  all  respe(;ts  tnoio  desirable  for  alniowi 
all  j)artsof  th(^  I'nitetl  States  than  are  those  via  ^Nionrn'al  and  Queltee; 
thitd.  the  fai-t  that  the  St.  Lawrence  Kiver  is  c,lose<l  l)y  ice  and  fogs  for 
about  six  months  ol  the  year;  and,  fourth,  the  fact  which  I  have  already 
ii(»ticed,  that  the  foreijin  commerce  of  the  United  States  under  the 
operations  of  the  "  transit  trade"  is  now  absolutely  free.     In  tlui  liplit 


of  these  facts  tht 


d( 


ot 


to  be 


thi 


the 


ial 


;,ouimei 

possibilities  of  Montreal  and  (^ueliec  which  under  any  circumstances 
iiee<l  alaun  iJoston  or  New  York,  or  which  niis'ht  atagf^jer  any  mind,  not 
dazed  by  the  chimera  of  "  conimeriiial  union.'' 

Mr.  Cliairnian.  although  it  appears  to  nio  that  the  scheme  of  "com- 
nu  reial  iiniou  "  has  not  enous^h  in  it  to-day  to  entitle  it  to  be  ranked  js 
a  living  ]  ■>liiical  issue,  still  as  the  subject  has  becu  presented  to^our 
committee  by  its  chief  advocate,  JNlr.  \Viuian,  for  whom,  personally,  1 
eulertain  jjreat  respe(;t,  i  will  invite  your  attention  to  two  objecrioiis 
tu  the  preposition  which  to  my  mind  are  conclusive  of  the  whole,  matter; 

First.  The  liscal  conditions  of  the  Dominion  Uoxernment  and  of  tlio 
Govetnineiit  of  the  United  States  present  an  insuperable  l)a7iier  to 
commercial  union  or  free  trade  between  the  two  <!onntries.  Tlie  n.i- 
tional  debt  of  the  I'liited  States  fell  from  $2,(;VH,<mi(»,{H)()  in  1807  to 
ei.OlO.ddL'.y.TJ  in  188t>.  the  debt  per  cai)tia  falling;  irom  $()9.L'0  in  IS(J7 
to  $15  12  in  188".>.  whereas  the  <lebt  of  the  Dominion  of  Canadarose  from 
$7r>,728.t>41  in  I8t>7  to  !»s2:}7,5o(),()41  in  188'.),  the  debt  ])erca]»ita  increas- 
inU'  from  i? 21.03  per  lapita  in  1867  to  $l().7nin  1889.  Be  it  remem- 
bered atsothat  the  ])r<'sent  enormousdebt  of  Canada  was  incurred  mainly 
in  c<^vertin<x  its  Uoveinment  into  a  political  transportation  ent.eri)riso 
operated  for  the  i.romotion  of  ends  ijumical  to  the  political  interests  of 
this  country,  aii<l  for  the  i)romotion  of  commercial  objects  detrimental 
to  the  interests  of  American  shipping,  American  (;omuu»rce,  and  Amer- 
ican transjiortation  lines.  The  success  of  the  present  Cana<lian  poli(\v 
of  encroar-hment  ni»on  American  interests  involves  increase<l  expendi- 
tures in  the  nature  of  subsidies  Mhich  are  freely  granted  by  the  peo]>le 
of  Canada,  while  the  people  of  the  United  States  cherish  a  prejudice 
(not  (-ntirely  reasonable)  against  subsidies;  a  prejudice,  which  within 
piiiper  liriiitafions  we  may  be  forced  to  overcome  in  order  to  provide  Hi 
ting  and  adequate  protection  to  American  shipping  and  commercial 
interests. 


ItlCLATlONK    WITH    CANAiM. 


92U 


The  iilciiof  assiinilatiiif;  tlic,  ciistoin.s  tarilVs  (»("  two  (!oii!itri»'s  so  differ- 
eiitly  aitiiiited  in  roj^sinl  to  their  |>ieNeiit,  and  piobalihi  hinire  necdis 
sceni.s  Nullicieut  to  condemn  the  wliole  8cheiu(j  of  coniiuoreial  union  as 
nil  alKsurdity. 

FUit  in  tlie  se^'oud  phieo  th(^  Hchenio  involves  a  structural  diftl- 
cnlty  which  wonhl  defeat  the  very  objicl  to  he  acconipli.slied.  It  pro- 
poses to  except  In  >ni  tlie  pnivisiuns  of  ''coninifi-cial  union"  or  "  free- 
trade"  between  the  twoeountrii's  all  ar(ieh-s  subject  to  duties  of  excise 
or  of  internal  revenue.  At  the  present  I  ime  S(»  per  cent,  of  tiio  revenues 
of  (Janachi  from  taxation  are  derived  tio'a  ciistonis,  ami  about  50  j)or 
cent,  of  her  customs  revenue  is  derived  i'roiu  duties  on  imports  from  the 
United  States.  It  is,  therefoie,  perfectly  apparent  that  the  huddeu 
iibiiudonment  by  Canada  of  so  lar^e  a  part  of  lier  riistoms  revenues 
wouhl  at  onci^  involve  a  very  larjie  increase  of  lier  ex(;ise  duties,  to  be 
protected  by  correspondinj;  cust(Mns  duties  ou  articles  imi)orted  from 
tlie  United  States,  lint  even  this  <loes  not  cover  the  ditliculty.  The 
abainlonnient  of  the  duties  on  manufactured  j^oods  imported  from  tlio 
United  States  would  j;rc:iitly  decrease  tlie  im])oitatioii  of  such  goods 
into  Canada  Irom  otlier  countries,  iiiul  correspond in;;iy  redu(;e  lier  reve- 
nue from  customs.  This  also  would  hi'.ve  to  be  made  up  by  iidditional 
internal  taxation,  to  be  again  protected  by  additional  (jiistoms  duty  ou 
American  goods.  Where,  Ihcn,  would  "commercial  union"  bo?  I 
answer,  snowed  under  by  (.-anadian  customs  duties,  adoi)te<lin  order  to 
oli'set  Canadian  excise  duties.  We  also  would  be  ob'iged  to  do  some- 
thing of  the  same  sort  on  this  side  of  theinternation:''  boundary  lineso 
long  as  we  lay  an  intiM-nal  revenue  tax  on  spirits  ud  tobacco.  Sol 
fear,  Mr.  Chairman,  that  in  the  end,  we  should  find  the  tail  of  ''com- 
mercial union"  to  be  bigger  than  its  body. 

Tliat  the  "commercial  union"  s(;heme  does  involve  this  insuperable 
ditliculty  is  clearly  apparent  from  the  resolution  uj)on  the  subject  intro- 
duced in  the  Dominion  rarliament  by  Sir  Kichard  Cartwriglit,  Mr. 
Wiman's  friend  and  coadjutor  in  this  business.  Here  is  the  extract 
from  the  official  debate  of  IMarch  14,  1888 : 

Sir  Richard  Cartwrijulit  moved:  That  it  i-j  hi;rhly  fieairablo  tliatthc  largent  poBsible 
freodoni  of  coniiniirfdal  interconrwo  slioiild  olitain  hotwcMMi  the  Jiouiinioii  of  (Janada 
.anti  the  Unitt'd  KStates,  ami  that  it  is  cxiu'diciit  that  iiil  iiit.i<  Ins  luaniiiaftiirod  in,  or 
tlie  uatuval  products  of  eitlicr  of  tho  Huid  coiintiioH  slioiihl  he  admitted  Iren  of  duty 
into  the  ports  of  the  other  (articles  subject  to  diitio«  of  excise  or  of  internal  roveune 
alone  excepted), 

Mr.  Chairman,  1  presume  that  the  exception  to  the  commercial  union 
scheme  is  put  in  parenthesis,  for  the  same  reason  that  eggs  are  put  nito 
omelettes  on  shipboani — to  hide  their  horrid  imperfections. 

But,  Mr.  Chairman,  1  see  in  this  scheme  an  open  door  to  far  greater 
(Canadian  encroachment  upon  American  interests  than  we  have  sufiered 
during  the  last  fifty  years.  Besides,  1  believe  "commercial  union"  ^)uld 
prove  to  be  merely  ablind  ditch  througli  which  the  current  of  advantage 
would  run  northwardly,  with  laterals  leading  into  certain  mines  now 
owned  and  operated  by  American  citizens  in  Canada. 

But  aside  from  all  objections  to  "  commercial  union  "  of  a  commer- 
cial, economic,  and  politi'al  character,  and  jissuniing  that  it  is  practica- 
ble for  this  great  nation  of  sixtyfivt!  millions,  whose  National  Govern- 
ment is  ingenuousljy  political,  to  enter  into  a  fiscal  partnership  with 
another  country  of  only  about  five  millions,  in  all  its  governmental  pro- 
cesses shrewdly  commercial,  there  are  diiliculties  in  the  way  of  the  practi- 
cal,administration  of  such  a  scheme  which  seem  insuperable.  It  is  abso- 
lutely certain  that  the  [Jnited  States  Covcrumeut  would  never  allow 

25552 50 


930 


EELATIOISS   WITH    CANADA. 


m 


4     > 


such  au  iustiiution  as  the  present  Doininiou  Govei  :nneiifc  to  have  any 
participatlou  in  the  collection  of  our  customs  revenues.  We  are  too  w  il 
acquainted  with  Canada  and  her  metbods  for  that.  We  should  demand 
absolute  control  of  the  external  customs  service  of  the  two  countrievS. 
But  that,  as  Sir  John  A.  Macdonald  has  very  properly  remarked,  tlio 
Canadiims  would  never  submit  to,  and  for  valid  reasons,  atteetiui;-  the 
honor  of  their  country.  It  is  also  clearly  api)arent  that  any  joint  ]>art- 
nership  administration  of  the  customs  service  of  the  two  countries 
would  not  only  be  in  the  nature  of  an  ''  entangling  alliance,"  but  that 
it  would  lead  to  inextricable  confusion. 

Viewed  from  the  stand  point  of  Canadian  politics,  the  scheme  of  com- 
mercial union  is  today  absolutely  chimerical.  Sir  John  A.  Macdouiild 
and  the  great  political  party  of  which  he  is  the  leader,  are  bitterly  o]»- 
posed  to  the  scheme,  for  it  goes  in  the  face  of  the  liscal,  political,  and 
commercial  features  of  the  ])olicy  upon  which  tliat  part^  has  so  Iodlc 
held  political  ascendency  and  is  still  tirndy  intrenched  in  i)ower.  'As  Ji 
practical  issue  in  Canadian  politics.  Sir  John  crushed  "  conmiercial 
union"  with  an  ei)igram.    Said  he: 

Eiiffland  will  liiivc  iiotliiiific  to  do  vvilli  it,  tlio  United  States  will  have  uothing  to 
do  with  it,  aud  Canada  will  have  notliiug  to  do  with  it. 

And  Sir  Charles  Tuppor  appears  to  have  laid  the  still  born  infant  up- 
on the  shelf,  when  he  declared,  about  a  year  ago  in  the  Dominion  Par- 
liament that  it  had  gained  no  foothold  in  Canadian  j)olitics. 

From  all  that  has  been  said  in  advocacy  of"  commer(;ial  union  "  it  aj*- 
pears  as  though  Mr.  Winian  and  his  coadjutors  in  tne  United  States  and 
in  Canada  have  viewed  the  subjects  from  a  rather  n;irrovv  stand- [)oiiit 
of  trade  interests,  and  that  they  have  erred  in  ignoring  the  fact  that 
governments  and  political  institutions  and  international  rivalries  con- 
stitute factors  in  international  relationships. 

Mr.  Chairman,  in  the  whole  range  of  our  foreign  relationships,  I  can 
conceive  of  no  scheme  which,  under  existing  circumstances,  wouhl  be  so 
glaringly  in  contravention  of  the  injunction  of  George  Washington 
against  "  entangling  alliances"  as  would  be  au  agreement  in  the  nature 
of  commercial  union  with  Canada,  ui)on  the  lines  projected  by  Mr. 
Erastus  Winian  and  Sir  Ilichard  Cartwright,  and  their  few  coadjutors 
in  this  country. 

ANNEXATION. 

Mr.  Chairmaa,  au  attemptto  review  the  important  questions  aifecting 
the  relations  existing  between  the  United  States  aivd  Canada  would  be 
incomplete  without  some  reference  to  the  subject  of  annexation.  It  is 
a  subject  which  heretotbre  I  have  ignored,  and  yet  it  might  seem  to  in- 
dicate some  lack  of  frankness  if  1  were  to  disregard  it  in  this  connec- 
tion. 

I  think  I  make  no  mistake  in  saying  that  since  the  thought  of  sepa- 
ration from  England  was  first  euttntained  by  the  people  of  the  thirteen 
original  States  of  the  American  Union,  there  has  been  a  pretty  general 
desire  in  this  country  that  the  British  North  Ameiican  Provinces  shall 
become  a  part  of  the  Ai.-CiJean  Union.  This  desire,  however,  has  al- 
ways been  aud  to-day  is  completely  controlled  by  the  inflexible  purpose 
of  refraining  from  any  act  of  injustice  or  of  encroachment  upon  those 
provinces,  and  from  any  act  or  line  of  policy  which  might  in  any  way 
interfere  with  the  free«lora  of  the  i)eople  of  Canada  to  8ha])e  the  course 
of  their  own  political  atfairs. 

But  since  tin  lirst  rumblings  of  our  rfvolutionary  struggle  all  th'^ 
overtures  in  favor  of  annexation  which  have  been  made  by  judi<*;ioiis 


RELATIONS   WITH    CAjNADA. 


031 


and  by  injudicious  people  on  this  side  of  the  boiindMry-line  have  been 
repelled  by  our  northeru  neijgfhbors.  The  case  all  ii\on^  seems  to  have 
been  one  of  unrequited  ail'ectiou.  Nevertheless  the  attempt  to  woo 
Canada  to  annexation  has  gone  on,  and  it  has  beeonie  with  some  an 
unreasoning  infatuation,  with  a])parently  the  natuial  result  of  incitiujEf 
the  Canadians  to  a  renunciation  of  oblij^ationsaiid  even  of  courtesies  and 
humanities  which  at  this  day  ^.iiaracterize  the  international  intercourse 
of  civilized  countries, 

Wiienever  any  question  involving-  the  rights  and  interests  of  the  ])eo- 
pleofthis  country  has  arisen  in  the  course  of  our  commercial  inter- 
course with  Canada,  or  any  measure  ot  ])ublic  po'icy  touching  our 
Canadian  relationship  has  come  up  for  a  fair  and  reasonaiile  consider- 
ation, theory  has  been  raised  in  this  country  by  annexationists  that  we 
must  be  careful  not  to  einsh.the  budding  sentimtuit  in  favor  of  annex- 
ation on  the  northern  side  of  the  interiuitional  boundary-line,  and  tluis, 
time  and  again  sensible  and  just  conclusions  have  been  prevented. 

Mr.  Chairman,  I  think  this  sort  of  nonsense  has  gone  on  about  long 
enough.  It  has  compromised  the  dignity  of  this  great  nation  ajid  even 
now  it  is  being  employed  to  screen  from  the  eyes  of  the  American  peo- 
ple indignities  which  should  be  repelled,  w  roiigs  which  demand  redness, 
and  encroachments  upon  our  interests  wliich  (a-y  aloud  for  just  retalia- 
tion. We  have  suffered  the  Canadians  to  toy  with  tlic  interest,  the 
honor,  ajul  the  dignity  of  this  country  long  enough.  It  is  high  time  for 
us,  in  an  upright  and  proper  maniuM-,  to  assert  the  rightful  i»ower  and 
iiiliuence  of  the  United  States  on  this  continent. 

It  is  always  unwise  for  the  people  of  one  country  to  attempt  to  trace 
the  current  of  political  events  in  anollier.  The  only  saf«*  mode  of  judg- 
ing of  the  disposition  toward  us  of  any  other  country  Is  by  inferences 
drawn  from  diversities  of  social  and  ])oliti('al  institutions  and  from  acts 
indicative  of  such  disposition.  \Vc  .shall  ^uiely  I'all  into  error  if  .we 
"attempt  to  set  any  other  rule  for  our  judgment  as  to  the  attitude  of  the 
Canadian  mijul  toward  the  United  States  at  the  ])resent  time. 

The  chief,  and  almost  the  onl.v  persistent  obstacle  to  annexation  is  on 
tl«i  other  side  of  the  line,  an<i  it  is  of  a  political  nature.  As  before 
stated,  the  Dominion  Government  is  a  somewliat  loose  jointed  confeder- 
acy with  certain  monarchial  tendencies.  From  this  confederacy  any 
one  of  the  constituent  members  c?Ji,  at  any  time,  secede.  Tlie  right 
of  secession  from  the  Dominion  Government  is  one  wliich  is  cherished  by 
the  i)eople  of  the  several  provinces,  and  it  is  a  sentinu^nt  which,  per- 
haps, constitutes  the  most  formidable  barrier  to  their  annexation  to 
our  indissoluble  Union. 

This  Canadian  sentiment  has  been  the  outgrowth  of  the  experiences 
of  one  hundred  and  lifty  years  of  separate  provincial  existence  and  of 
development  under  diverse  conditions  of  trade  and  industry.  Just 
such  experiences  well-nigh  drove  our  forefathers  to disuinon,  even  after 
the  Revolutionary  war.  Yes,  sir  L-t  us  confess  it  to  oui'selves,  even  after 
our  Federal  Constitution  was  adoj)ted  it  took  a  common  interest  in  ,au 
imperial  domain  and  the  exi^eriencesof  seventy-live  years  of  national  life 
and  a  great  civil  war  to  consummate  our  American  i'ni(>n.  On  the  other 
hand,  the  whole  force  of  political  circumstance  hastendevl  for  moretlum 
a  hundred  years  to  drive  the  Canadians  in  the  opposite  direcjtion.  I  say 
this  not  to  their  disparagement,  but  as  a  philosophic  tact  oi  history. 

lii  the  light  of  our  own  experiences  let  us  not  wonder  that  the 
Ih'itish  Provinces  of  North  America  cling  to  their  indej^Mident  politi- 
cal existenct  under  a  mere  nominal  c(tnnectiiin  to  (ireat  Jbitain,  which 
is  strong  because  it  sets  so  Jigiitly  upon   them,    lieligion  in  i)olitics 


:i 


932 


RELATIONS    WITH    CANADA. 


and  race  iircjiidices  also  distract  Canada  aad  repel  annexation.  One 
hundred  and  tliivty  years  aijo  the  British  Hag  .supplanted  the  tri  color 
of  Franco  on  tlie  plains  of  Abraham,  but  to-day  the  proceedings  of  the 
Canadian  Parbaiueut  are  printed  both  in  the  English  and  French  laii- 
guaoes,  and  tho  French  element  assorts  its  existence  as  an  integral  force 
in  Canadian  politics. 

Canada  has  her  political  cranks  and  theorists  and  political  advent- 
ureis  who  prate  about  annexation  to  the  United  States  5  hut  the  senti- 
ment in  favor  of  annexation  has  never  been  oj^enly  proclaimed  by  any 
political  party,  or  even  by  any  forceful  political  faction.  The  very  fact 
that  the  Canadian  peoj)le  have  made  as  great  a  sacrifice  of  treasure 
in  the  construction  of  their  present  system  of  transportation  which  at 
once  subserses  tiie  purpose  of  binding  them  togctlier  politically  by  the 
ties  of  commerce  and  of  giaspinga  part  of  the  internal  and  foreign 
comnu'rce  of  the  Unitt-d  States,  has,  I  am  led  to  believe,  had  the  elfect 
of  weakening  the  sejitiment  which  has  always  floated  in  the  minds  of 
some  Canadians  iu  favor  of  annexation  to  the  United  States. 


COIfCLUSlON. 

It  does  not  appear  proper  that  I  should  make  more  specific  recom- 
mendations for  the  cure  of  the  evils  affecting  our  Canadnm  relation- 
ships than  have  been  incidentally  mentioned  in  considering  the  facts 
which  define  and  describe  those  evils.  It  seems  proper,  liowever,  that 
I  should  enumerate  the  general  conclusion^  which  I  have  reached  from 
a  somewhat  careful  retle<.'tion  upon  the  facts  hereinbefore  presented. 
Those  conclusions  are  as  follows : 

First.  There  are  certain  incompatibilities  existing  between  the  or- 
ganic features  and  the  interests,  aims,  and  methods  ol  the  Governments 
of  the  Dominion  of  (Canada  and  of  the  United  States  which  render  it 
impracticable  to  prevent  Canadian  encroachment  upon  American  in- 
terests by  treaty.  Tlie  first  of  these  incompatibilities  arises  from  tho 
fact  that  the  Dominion  Government  has  a  very  large  tiuaucial  interest 
in  railroads  audcan;il.s,  which  interest  is  soclo,sely  related  to  cheri.shed 
political  objects  tliat  tliat  Government  is  forced  to  pursue  a  line  of 
policy  aggressive  towar<l  the  commercial  and  transportation  interests 
of  the  Uniied  States.  Our  National  Government  is  in)t  so  constrained 
by  participation  iu  the  commercial  and  transviortatiou  interests  of  this 
country. 

The  second  of  the  iiicomi»atibilities  here  referred  to  arise«  from  the 
fact  that  the  Government  of  (.'iinada  is  essentially  an  autocracy  of 
political  boss  rule.  The  Canailian  "  premier  "or  chief  of  the  political 
party  in  power  at  once  dcininates  the  administrative,  the  legislative 
branch  of  the  government,  and  the  putative  ruler  of  the  country,  styled 
Governor-General.  Besides,  the  .so-called  constitution  and  the  laws  of 
the  Dominion  of  ('anada  admit  of  the  exercise  of  almost  any  expedient 
necessary  in  order  to  carry  into  effect  the  extraordinary  functions  of 
the  <roven\ment  and  the  will  of  its  "premier." 

It  is  of  course  clearly  api)arent  to  this  committee  that  a  Government 
&o  endowed  nuist  be  able  iu  the  exercise  of  tact  and  commercuil  adroit- 
ness to  gain  important  advantages  over  our  Government  of  co-ordinate 
and  virtually  independent  departments. 

Second.  The  particular  danger  to  wliieh  American  ("ommeroial  inter- 
<'Sts  are  rxpose<l  on  the  land  and  on  the  .sea  luises  sohdy  from  the  fact 
that  tho  Dominion  Government  has  thrown  th<j  f^U  force  of  ita  linancial 


iivV. 


RELATIONS   WITH    CANADA. 


933 


an<l  political  power  in  favor  of  the  Canadian  Pacific  Railway  and  its 
coiiiit'ctin^'  steamer  lines  on  tlio  Atlantic  and  Pacific  Oceans;'  that  the 
British  Government  is  extending  its  aid  to  such  steamer  lines,  and  that 
the  full  power  of  this  combination  is  bronght  to  bear  against  American 
railioads  which  from  the  force  of  circumstances  compete  actively  with 
each  other,  and  at  the  same  time  are  greatly  restrained  by  the  laws  ot 
tlie  United  States  for  the  regulation  of  commerce. 

American  steamer  lines  on  the  Pacific  Ocean  also  are  so  neglected  by 
their  own  Government  that  the  subsidized  lines  of  Canada  and  Great 
Ijritain  will  be  able  to  drive  them  from  the  seas.  The  (luestion  which  ' 
confronts  tlie  people  (»f  the  United  States,  therefore,  is  not  as  to  whether 
American  railroads  are  able  to  cope  with  a  Canadian  railroad  in  a  free 
competitive  struggle,  nor  as  to  the  relative  power  of  the  United  States 
(Tovernment  and  of  the  Dominion  Government,  but  it  is  simply  a  ques- 
tion as  to  whether  the  Government  of  the  United  States  will  so  exercise 
itfi  ])owers  as  to  prevent  a  foreign  rai'road  with  its  steamer  line  connec- 
tions, backed  up  by  foreign  GoveriinivMits,  from  riding  rough-shod  over 
American  internal  and  foreign  commerce,  and  over  American  steamer 
lines,  Am(*rican  sea-ports,  and  Amerieaji  railroads. 

Wiuit  we  need  is  a  line  of  policy  adapted  to  the  particular  exigencies 
i)f  the  case.  It  we  should  hitch  the  political  ami  financial  i)ower  of 
tills  country  to  its  commercial  interests,  as  the  Canadian  and  British 
Governments  have  done,  the  United  States  would  shortly  become  the 
commercial  monarch  of  the  globe. 

Third.  The  Government  of  Great  iiritaiu  is  powerless  to  intiuenceor 
Coerce  the  Dominion  Governmenr  into  the  susi)ension  of  its  aggressive 
iiolicy  toward  the  United  States,  or  even  tO  lead  that  Government  to 
ol)serve  its  treaty  obligations  to  tlic  United  States. 

Fourth.  The  Unit(Hl  States,by  vi'"tueoritsenormously  greater  popula- 
tion and  wtialth,  ami  constMjuently  the  immensely  greater  value  of  its 
markets,  and  by  virtue  also  of  its  vastly  su[>erior  geograjdiieal  situa- 
tion, its  more  genial  climate,  and  more  fruithful  soil,  and  its  superiority 
ti>  Caiuula  in  ahnost  every  aspect  of  natural  losources,  is  abU;  by  legis- 
lative action  to  dictate  such  terms  to  the  Dominion  Government  and 
rljc  government  of  Newfoundland  as  will  secure  the  United  States  not 
oiUy  against  every  act  of  aggression  and  every  violation  of  the  rights 
of  American  citizens,  but  which  will  also  prevent  ever>  attempt  by  the 
Dominion  Government  to  interfere  with  the  natural  course  of  our  na- 
tional development,  involving  the  commercial  supremacy  of  the  United 
States  on  this  continent. 

Fifth.  Our  national  character,  sense  of  justice,  and  the  friendly  dispo- 
sition of  the  {)eople of  the  United  States  towards  the  people  of  Camula 
totbid  that  the  United  States  shall  ever  encroach  wpou  the  rights  of  the 
J)omini(m  of  Canada,  or  that  it  shall  take  any  steps  in  the  directio/i  of 
fnereing  Cnmida  to  anTu^xation  to  the  Unite<l  States. 

Sixth.  Th(i  incompatibilities  of  organic  characteristics,  and  of  interest 
aims,  and  methods  which  exist  between  Canaila  and  the  United  States 
I'Mider  the  scln^ne  of  "  commercial  union  "  absolutely  impracticable. 

Seventh  :  Tiui  adjustment  of  all  the  causes  of  complaint  which  now 
iiffoct  our  Canadian  relationships  can  be  effected  on  the  bestJind  most 
enduring  foni\dations,  not  by  treaty,  but  by  means  of  reciprocal  legis- 
lation, in  which  the  United  States  shall  take  the  initiative.  Experieni'e 
lias  clearly  proved  the  folly  of  attempting  to  bargain  for  exemption 
iigainst  Canadian  encroachment. 

Uighth :  The  settlement  of  the  diflereuces  which  now  exist  between 


H 


934 


RELATIONS   WITH   CANADA. 


/ 


the  United  States  and  Canada  involves  no  issue  upon  which  the  t^vc 
^irat  political  parties  of  the  country  are  now  divided. 

Jn  his  second  annual  mCiSsage,  submitted  to  Conjiress  December  7, 
1S3U,  Presiilent  Jackson  referred  to  the  protection  of  A?nerican  interests 
ajrainst  foreign  industrial  competition,  and  also  to  the  protection  of 
American  interests  against  "the  most  seltish  and  destructive  jiolicy 
which  mi^ht  be  adopted  by  ibreigu  nations."  The  public  services  of 
that  great  military  and  political  leader  had  been  directed  especially 
against  foreign  policies,  aggressive  toward  American  interests.  In 
meeting  such  aggression  the  patriotism  of  the  whole  country  has  at  all 
times  i)resented  an  unbroken  front,  and  there  appears  to  be  no  reasou 
why  men  of  every  political  persuasion  can  not  now  unite  upon  such 
measures  as  shall  fully  vindicate  the  interest,  the  honor,  and  dignity  of 
this  great  country  in  its  relations  with  Canada. 

/ 


^ 


'm 


^u 


N;- 


